Tuesday, October 9, 2012

Gold Futures Net Short Commercials

Commercials are always "net short" gold.    They have the product, they want to hedge the downside to lock in a more steady profit.  That is what corporations like...steady profits, rather than big wins and big losses, so they pay for this "profit insurance", i.e. a hedge.

But lately they have gone REALLY net short.   And they are usually right, when gold is "overbought" whatever that means, by whatever measuring stick you are using.

This chart is from Breakpoint Trades...sign up on right for monthly or 6 month membership, it is well worth it.   Those guy work really hard, labeling charts and even creating new mechanical trading systems and the like, and always coming up with trade ideas on individual stocks so you don't have to go head to head against the HAL 20000 computers on the main racetrack.  



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