Even More Commercial Shorts on Gold - expectations: Downward - Then Huge Upward - Buy on The Down!

If you have been considering purchasing Gold - from everything I have been reading, do not do it right now.

The amount of commericial shorts has increased (I can guess why - the dollar is going to be falling in the index Big time - next month - I bet).




The chart is from: http://news.goldseek.com/CliveMaund/1249844182.php

There are more charts there - but look at his comment -

So how do we reconcile the seemingly very bullish chart pattern for gold with the seemingly bearish COT data? Whilst recognising that gold could climb in the face of Large Spec long and Commercial short positions rising to even greater extremes, a more likely scenario is that Big Money is preparing an ambush - a sharp reversal to the downside to shake the little guy out and scoop up his gold and PM stocks at knockdown prices before prices reverse again to the upside and then the breakout to new highs occurs. This scenario is described in more detail in the article BIG MONEY'S game plan to FLEECE GOLDBUGS ahead of THE BIG ONE.

A complicating factor that could exacerbate the downside in PM stocks should gold and silver break lower will be if the broad stockmarket goes into correction mode at the same time. This looks likely as Abbey Joseph Cohen appeared on CNBC last week proclaiming a new bullmarket, which has been found to be one of the most reliable indicators that we are close to an intermediate top in the market at least.

If the talking heads on T.V. tell you one thing - look the opposite way. Please don't forget the insiders of the markets have been selling off their stocks! The link is in another post on this page - about the selling off of their stocks.