It appears that Friday's price rally in all precious metals was met with massive short selling by JPMorgan Chase et al...
Ed Steer writes in his daily:
"Here are a few sentences I stole from silver analyst Ted Butler's short Monday commentary to his clients regarding yesterday's COT Report...
"By my calculations, JPMorgan is holding a net short position of 35,000 contracts in COMEX silver futures, one of their largest short positions ever, as of the latest COT. That’s the equivalent of 175 million oz. Because there was also a large increase in spread positions in the Disaggregated COT report, JPM’s market share is now up to 34% of the entire short side of the COMEX silver futures market. While I am stating this as factually as possible, it almost qualifies as being unbelievable."
"Nothing free market about this. If you want a visual and historic representation of the COT reports going back about 16 year...these linked interactive charts show the short and long term trends for all COT categories, which are visible at a glance. For gold the link is here...and for silver the link is here.
"Yesterday's COT Report snapshot of the 'big 4' and 'big 8' short-side traders comes in this excellent graph of "Days of World Production to Cover Comex Short Positions" as provided by Nick Laird. ..."
click through for the full piece and the chart.