Reuters/Issei Kato
- Silver prices could be on their way to rising.
- Based on futures positioning, it could be an explosive move higher.
- Follow silver prices in real time here.
Over 90% of the time, sentiment data is completely useless to me. I only care about it when we see it at or near extremes, which is not often. Some people dismiss sentiment data altogether in favor of tools that can be used more frequently. Not me. I’ll stay patient all day and just wait for my pitch. The unwinds from extremes in sentiment can be very powerful and last much longer than investors usually expect.
Currently, we’re seeing an interesting setup in Silver. Commercial Hedgers, which are traditionally the “Smart Money”, have on pretty much their smallest hedges of all-time. In fact, Commercial Hedgers, who are always short Silver Futures, it’s just how short, are now almost net long! That never ever happens. So it’s got my attention.Silver is in a very tight and narrowing range. The bulls are frustrated and the bears are frustrated. No one is making money here from a directional play. The resolutions from these tight ranges into an apex, just like this, tend to be explosive.See the rest of the story at Business Insider
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