Market jitters were the underlying theme in this week’s trading environment, which is understandable given that we are days away from the U.S. election. Multiple central bank meetings, i.e., ECB, caused Global markets to play off one another, with the Dollar signaling "overbought" as the likely catalyst for gold/silver correction this week. The other near term "risk" to gold/silver would be a contested election that would lead to another stimulus delay. Don’t worry; the massive fiscal wave will come, the money supply will continue to surge, and higher inflation will show up sooner or later.
This week I wanted to look at position sizing in the metals markets and concentration of bets, which often gives us clues to how the price could play out. I am noticing that the small speculators positioned already, the proprietary traders are trading away, the locals are mostly long; however, CTA’s, hedge funds, and money […]
October 31, 2020 (updated October 31, 2020) Published by StockMan