Hi, this is Mike Maloney, and this is the latest "Insiders Report" and is also an action alert.
It's been a while since I have taken an action, and I'm going to be making another purchase and it's because of
the setup that we've got going right now based on some technicals and the commitment of traders.
And we'll get to that in a moment.
But first I wanted to let you know that the next episode of "Hidden Secrets of Money" is coming out shortly
and you're really not going to want to miss this one. It is great, and it's about crypto currencies.
Also, I wanted to let you know that every once in a while we make one of our insider's videos public. This one
we might make public just because of what's going on right now in the market.
I just wanted people to see what the current setup is
so to get to the data that is the reason that I'm making it purchase.
This is the commitment of traders report and all of the insiders here
we've been following this for quite a while and
again the blue area represents the net short position of
the commercial traders the big bullion banks like JP Morgan and so on and
the red area that's in the background behind the price here the price is this gold line on gold and
the red area that's in the background is the percentage of open interest
This is the total number of contracts on the commodities exchange
and it's the percentage that the net short position of the
Commercials. The commercials have Long's also, so they're they're both long and short, but if you deduct their longs from their shorts
these are the shorts that are left over and
So it's the percentage that this represents of this so one of the things that you know you'll notice is that?
When they're not very short almost no shorts at all that tends to go with some sort of market bottom
and if you go up to a market top and
Then you go down here and look at what they did they just keep on betting more and more
That the price is going to go down as the price rises so they're losing on these contracts here
they're getting squeezed, but they keep on adding more and more and more of them and
Eventually a top comes in and then as the price falls from these tops
They cover their short position, and they make a profit on this price decline here. They're making a
pretty good profit
You'll see this same thing repeated over and over again now
let's take a look at the price action for this area here the commitment of traders reports the
Information is compiled from a Tuesday, but they don't make it public until later in the week
So I just generated this chart. It's on the weekend right now, so this is
Friday's information and so Friday
Thursday Wednesday Tuesday
So they covered their shorts on this day that it dropped big
And they made a profit and then if we go back to the the Tuesday before that this is Monday Friday
Thursday Wednesday Tuesday that turned out to be a high
And so if you look back at their so the previous one was a high C
They had actually had added to their short position on that high
So they were adding from that this was a Tuesday so Monday Friday
Thursday Wednesday
Tuesday, so it was way down here
And they added to their short position on the way up and then they won on the way down when they buy back those shorts
They're winning, but that
information is
From here, and we had another three trading days after that and the price dropped significantly
During that period of time now, let's take a look at what silver did and silver dropped a bit more than gold
They covered a whole lot more of their short position, and they also covered instead of
Expanding like they did here on the previous week. They had covered a little bit on the previous week
and the
percentage that this
Of the open interest you'll notice open interest went up
But their net short position went down and the percentage that this represents of open interest has fallen
from almost 40 percent
Down to like 33 percent something like that
So what this tells me though is that we're getting closer to a bottom and the bottom might already be there
I'm not sure because like I said the data is from the previous Tuesday, so this is Friday Thursday, Wednesday
Tuesday so it's from
There closing out their shorts and that gets reported here, and then Monday Friday
Thursday Wednesday Tuesday
This was was not a high like it was on gold the previous Tuesday was not a high
And it is reflected in how the commercials covered a little bit of their shorts, but they've covered a lot of them
And that was as of last Tuesday
So that was here the price has fallen more
It went up on on Friday
but not a huge amount this does suggest that we could be getting near a
Temporary bottom here because of the covering is from last Tuesday
They've probably covered more, so they're probably down in this area right now, which is where other bottoms have occurred
You know you get into these low areas and you get into some major bottoms now
Let's look at some other information reasons that it might be a good time to buy silver
this is the 200-day moving average here this blue line and
the price of silver is in the background and so any point in this line if
You take the previous two hundred days and add them all up and then divide it by 200 you come out with an average
So this is the average price of the past 200 of these days?
Now whenever it's extended way above the 200-day moving average. You're prot in the short-term
You're probably not getting a great price
But whenever it's seriously below the 200-day moving average in the short-term
You are getting a good price and look at what has happened in just the past couple of weeks here
Silver sword fell off a cliff. I considered a big bargain right now
I do think it can fall a little bit further
This is the long-term price going all the way back to the beginning of the bull market in
2003 and I first started buying silver right here in April of 2003 so I've been riding this whole thing I
Didn't buy any up in this area. I did buy some here in the 30s though. I do have to admit
But I also bought a lot back in this price dip in the global financial crisis when everybody else was
panicking I was able to
increase my position significantly, but what I see here is I've drawn a trendline and
You see a couple of hits back here and a hit here and a hit here and a hit here in the flash crash that
Happened a few months back
and
We're very very
Close to this long term trend line so it could go down to 15 bucks or just a little bit under and it could touch
This line but I feel very safe buying right now. I feel like it's a bottom
I feel like this is the time and that I should pull the trigger and make a larger purchase
And so that's exactly what I'm doing now the hidden secrets of money episode that I was telling you about
this is my journey in crypto currencies and the
evolution
And there is some really big big big news at the end of this thing you're going to want to watch it
For those of you that don't know how crypto currencies work. This is a pretty good primer on it
You're going to be amazed at how all of this works
we get down inside the guts of a computer shot is sort of and try and
Animate what's going on so that you can understand?
What a full consensus distributed ledger is which is the really important part of what crypto currencies are?
So make sure you watch this upcoming episode of hidden secrets of money
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