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This Is What A Short Squeeze Looks Like
Brent crude prices eased 0.7% to $49.61/bbl last week as Iranian sanctions relief proceeds toward fruition. WTI crude gained nearly 2% as the 2nd largest speculative short position since 2006 in NYMEX futures and options leaves the prompt market significantly unbalanced and extremely susceptible to upside catalysts.
The current spike in money manager short position (136 million barrels at last count) is second only to the 178 million barrel short that occurred in March of this year which caused both the initial plunge to $45/bbl as well as the subsequent rally back to the $60 level.
Recent history suggests that despite weak fundamentals, crude prices are more likely to rise further before falling again.
h/t Alpman
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When will Silver unleash it's shorts?
"I want video when it does! $100,000 bucks!" -Larry Flint
I'd give it a retest at $53 /bbl then fail, then epic fail, then after September 17th, crash, burn, and shitload of shale bankruptcies fail.
Then I can make a lot of money. :)
I call BS everyone was long Spy and short Uso
That changed last week
As of now and until further notice, only when the insiders decide to do so. Obviously, they are right now not interested in seeing gold and silver rise significantly or trend upwards. As long as the world has confidence in the used toilet paper aka USD and there is enough gold to operate the second gold pool, these bastards have no problem to keep a lid on the price of precious metals - as there is not much money needed to do so, relatively speaking.
To sum up, under either one of the three conditions PMs will start to rise:
1. When the second gold pool breaks
2. When the insiders decide to do so
3.When the US$/fiat con game is over for good
Related to that, I found this article very revealing about how the LBMA manipulates its own data so as to align it with the big boys mouthpiece data of the GFMS.
Normally I would be inclined to agree with ZH regarding squeeze potentials in highly shorted instruments.
However last Thursday when Gartman claimed "Commodities have bottomed" it was pretty much the kiss of death and you know WTI is headed much lower again.
This is the warmup for what's coming in the VIX.
Two minutes to midnight. The F/X markets are open.
There are actual oil shortages in the heating oil industry that can't be explained unless there's a hidden supply problem.
What, no mazout in Bruxelles, SD?
Maybe in Europe, but not the US. Inventory is 22% higher than last year
BTFD
"Whenever too many people arre doing the same thing, the market will go through a period of adjustment." - Gary Biefeldt
"As an alternative approach, one of the traders I know does very well in the stock index markets by trying to figure out how the stock market can hurt the most traders. It seems to work for him." - Bruce Kovner
Whenever something has to happen, there's a lot of easy money on the table for people with the size to move the price. (that one was me)
Uhh..Ohh. I think the DoW might take out the 200 week avg{15550area} next week.
We can only hope.
Love to see the Doom Ball rolling down the hill again...
Can anyone remember when (if at all) there was a short squeeze setup like gold is set up right now?? 126:1 short??
Beuler? Beuler?
Gold up 1.20 !
The DJIA is showing classic megaphone top chart. The big one is coming....
This is the megaphone pattern:
http://www.trending123.com/patterns/reverse_symmetrical_triangle.html
This is the dow chart with 100 years of data:
http://www.marketwatch.com/investing/index/djia/charts?symb=DJIA&country...
What do you think?