It sure does look like the commercials are girding for a kill...

Regards - VHF

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MANAGED MONEY SHORT POSITIONS…THE BEST INDICATOR OF A BOTTOM

Silver Doctors

June 5, 2012

IT LOOKS LIKE WE ARE READY FOR A NICE MOVE IN GOLD & SILVER…

I have been following Gene Arensberg for years. His two charts below give us a good indicator that a bottom in close at hand, and a nice move higher is in the cards. Again, its not the managed money, or speculative longs that control the market, but the COMMERCIALS.

The MANAGED MONEY SHORTS have given us a trend that shows the following…. as the managed money shorts reach a high peak in contracts, the price of gold and silver hit a bottom.

As we can see from both of these charts the MANAGED MONEY SHORTS are now hitting new highs… silver actually looks like a new high record since 2008. If we go back to 2008, we can see that the first high peak (IN BLUE) showing the managed money positions, the price of gold and silver were almost at their final lows. After a brief move higher, gold and silver did fall again until the end of OCT 2008.

Furthermore, the managed money shorts now have more positions than they did when silver was falling in SEPT-OCT 2008. If you take a good look at both charts, you will notice when the managed money positions hit peaks, the price of gold and silver had hit lows and were about to move higher.

We don’t know what the short term move in the price of metals will be, but this is a good way to see how the managed money shorts correspond with the LOWS of both GOLD & SILVER.

Lastly, time for everyone to HAVE SOME BALZ and stop complaining. I have been in silver since 2002… and I have seen some big moves up and down. I feel more confident today than I did when silver hit $8.90 back in 2008.