We use the Commodity Futures Trading Commission Commitment of Traders report to generate daily buy and sell signals in the commodity futures markets and Exchange Traded Funds. Our analysis has been featured in many places online and in print and is disseminated nightly via the COT Signals, nightly email.
Tuesday, June 26, 2012
Silver Futures Set to Rally
Commitment of Traders Report Points to Higher Silver Prices
Commercial traders building position for silver futures rally.
June 26, 2012
This trade setup is merely a
random sample of the day’s trades generated by COT Signals. To track our work
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The commercial traders have nailed
the silver market for the last few months. They were the heaviest sellers at
the March highs. They sold more than 10,000 contracts through the month of
They’ve also been the heaviest
buyers through the May – June decline, adding 7,000 contracts in the last
month. These additions have pushed their position just above their buying
levels in early January.
Their buying has also led to a
technical divergence in the ARSI momentum indicator. We can see that the market
made a new low on Friday’s trade, down to $26.57. However, the ARSI’s significantly
higher reading in light of the market’s new lows provides evidence of a
turnaround in the market, rather than continued downside.
We will be buying September silver
futures and placing a protective sell stop at the swing low of $26.57. If you would like to trade commodities with us, please go to Commodity & Derivative Advisors.
information is not to be construed as an offer to sell or a solicitation or an
offer to buy the commodities herein named. The factual information of this
report has been obtained from sources believed to be reliable, but is not
necessarily all-inclusive and is not guaranteed as to the accuracy, and is not
to be construed as representation by Commodity & Derivative Adv. The risk
of trading futures and options can be substantial. Each investor must consider
whether this is a suitable investment. Past performance is not indicative of