From The TSI Trader:
I came across some information earlier this evening that appears to be not only interesting, but may also provide a decent clue that gold is not likely to trade much, if any, lower.
The following link will take you to the full discussion and I wish all credit to be given this author, Mr. Arensberg and his GGR
-- Got Gold Report
, from which I have shared the chart below.
What follows is one of his excellent charts from his publication dated a few days ago - February 18th. It details the weekly net Managed Money COT gold position (blue) as well as the price movement of gold futures since 2008 (maroon).
I encourage you to read his report if you are interested in either the current positioning of the various powers within the Commitment of Traders report (COT), or if you are specifically interested in the widely touted notion that hedge funds are abandoning their gold investment positions.
My interest in this chart, to be honest, is to assess how smart these hedge funds are.
I have drawn five light blue arrows to locations in the past seven years when the positioning of Managed Money was heavily short. At present you may notice that they are more short of gold than anytime since 2008...
Read full article (with chart)...
More on gold:
Unusual charts show a major gold bottom could be forming now
What you need to know about the terrible sentiment toward gold
Long-term chart shows how far gold could fall