SILVER COT REPORT 8/3/12: Commercials Increase Net Shorts By 30 Million Ounces!

Submitted by SD Contributor Marshall Swing

Commercials sold off  -3,500 longs on the week and added 2,407 shorts to end the week with 44.64% of all open interest, up only 0.22% in their share since last week, and now stand as a group at -106,810,000 ounces net short, an increase of almost 30,000,000 ounces net short from the previous week!

Large speculators picked up another 1,103 longs while covering a massive -3,774 short contracts improving their net long position to 65,180,000 ounces, an increase in their net long position of almost 24,500,000 ounces from the prior week.

Small speculators added 281 longs and covered -749 shorts for a net long position of 41,630,000 ounces an increase of just over 5,000,000 ounces net long from the prior week.

The small speculators were not fooled into buying more longs as they knew a raid was coming and signature raids did take place on Wednesday and Thursday of this week.

The large speculators, having added almost 3,000 long contracts in the previous two reporting periods, are sure to have virtually all those positions destroyed by the commercials, late this week.

The long run began the previous Tuesday just prior to this reporting period beginning at a price of about $26.75 and topped out at $28.33.  After the two raids late this week, price saw a bottom of $26.97.  I believe, firmly, that the long buying from the previous week, between the prices of $26.75 and at or around $26.97 was all commercial instigation to incite a long rally on the part of the speculators who would be robbed later this past week.

These rallies are planned.  The coincidences in the prices points are no coincidence, in my humble opinion.  See the attached price chart with my comments and reference the price points.

These manipulations are as plain as the nose on my face…

The spot price leap you see, at exactly 9:00AM on Friday is absolutely fake. In the half hour prior, there is a clear raid to knock out the previous 24 hour’s long positions then a giant long purchase by the commercials who are attempting to incite a rally for this coming Monday and week’s trading session.

This is how they manipulate the market to make huge profits.

You will not see price drift significantly lower in a consolidation pattern this week.  It will either go up or if it languishes then you will see a massive raid.  If price were to drift down then the commercials would lose money and profit potential and they can’t have that happen, can they?

As always, for your convenience, if you would like to contact the CFTC and express your views to them, I have provided you their phone numbers and I hope earnestly that you fill up their phone lines: http://www.cftc.gov/Contact/index.htm and email addresses as well:

ggensler@cftc.gov  Chairman Gensler

bchilton@cftc.gov  Commissioner Chilton

jsommers@cftc.gov  Commissioner Sommers

Somalia@cftc.gov  Commissioner O’Malia

mwetjen@cftc.gov  Commissioner Wetjen

dmeister@cftc.gov  Director Meister

See you next week!

Marshall