Spreading Activity Helps Establish Duration of Paper Operations

The study of spreading position of non-commercial traders can be most useful futures and options market analysis. Statistical analysis of spreading activity can provide insight to the duration of paper market ‘operations’ in the precious metals markets

Spreading positions attempt to profit from the difference between contract prices. Non-spreading positions are taken based on a future expectation of price. Trend following and hedging activities tend to reflect the bulk of non-spreading activities.

Paper operations through leverage and media coordination will beat the grass to startle the snakes. The process of beating the grass creates uncertainty. This uncertainty can often be gauged by non-commercial spreading activity.

The headlines and media are pushing the bearish consensus on gold and silver, but the growing statistical concentration of spreading activity suggests the opposite. Tired of being beaten like rented mule in the leverage paper game? They key to success is knowledge and discipline.

Gold London P.M Fixed And Spreading Diffusion Index (DI)


Silver London P.M Fixed And Spreading Diffusion Index (DI)