There Still Chips On Table In The Silver Game

The invisible hand of control is certainly not restricted to the oil market. Notice invisible hand pushes the silver market at tops and bottoms. For example, silver rallies, illustrated by green arrows, tend to be associated with contractions in net long position as a percentage of open interest (NL%OI) by commercial traders. This opposing action reveals the footprint of control. As the price of silver advances, the invisible hand controls it through the issuance of paper supply. The opposite happens when the price of silver declines. That is, NL%OI increases as the price of silver declines.

Gold London P.M Fixed and the Commercial Traders COT Futures and Options Net Long As A % of Open Interest


Who’s the invisible hand pushing? They’re pushing noncommercial (specs) and nonreportable (retail) traders. As of June 21st, the specs have been pushed or concentrated to the short side. Readings of 12%, 8%, and 7% in the COT money flow table illustrate statistical concentration. Statistical concentration is often the necessary precursor tradable bottoms. Noncommerical traders, largely populated by black boxes, invariably sell when they should be buying, vice versa. This makes the jobs of concentration by the invisible hand relatively easy.

COT Money Flow Table


The invisible hand wants to control the trend. To do this, they must concentrate both the specs and retail traders on the wrong side of the trade. The COT money flow table reveals a WA reading above 20%. This suggests that retail money is still not concentrated. This setup is comparable to bad player with chips on the table playing in a competitive poker game. It won’t be long before the chips are gone. The invisible hand will be going after retail money’s chips.

The red arrow in the chart below implies the direction of retail money flows as the invisible hand cleans them out in the coming weeks.

Silver London P.M Fixed and the Commercial (C) & Nonreportables (NR) Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest