I rarely mention the COT (commitment of traders) positions in my reports but felt it necessary to highlight recent developments. In the world of commodity trading, the commercial hedgers are viewed as the “Big Players” or the “Smart Money”, as a rule, it’s best to align your trading strategy with their purview.

The commercial short positions have built steadily over the last few months, and just recently positions hit levels not seen in over 15-years (356,553 contracts). What does this mean? It says prices have extended well beyond normal, and the smart money is betting on a correction coming, they are usually right.


Also, silver prices made a full bearish engulfing pattern today deep into a cycle; prices could easily start correcting from here.


The next few days could be important.