There has been a noticeable drop in Gold open interest. Since open interest is definitely declining, look at the players. Who is doing the buying here? The Commercials. Small Specs and Large Specs have been liquidating.





Speak your mind

3 Comments so far

  1. Andre Wallin on January 28, 2011 1:47 pm

    thank you very much for writing a book on this subject.

  2. Anatoly Veltman on January 28, 2011 3:13 pm

    Alas, there is no trading signal from Larry’s correct observation; the fact of the matter is that Commercials normally buy into declining market. A trading signal would only arise, if they didn’t - but no textbook I know had ever explained that.

    1. Due to Larry’s COT factor, there surely will come a bounce

    2. Following such bounce, into which the Commercials will duly sell - Gold will turn down again

    3. Only then will come the moment of truth: during the next decline - will the Commercials WITHHOLD BID? That would confirm trend DOWN

  3. Andre Wallin on January 29, 2011 6:09 pm

    Thank you also for recommending The Fighter’s Mind. So many nuggets of wisdom. I cannot describe how good it is. I check out just about every book that is recommended on this sight and I am so lucky to have a such wonderful library in Milwaukee. It is a modest city, but it is the best place in the world to evolve.


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