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Dumb Money Piles Into Silver

Published 05/26/2015, 02:56 PM
Updated 07/09/2023, 06:31 AM

Today's chart focuses on silver yet again. In a note earlier this month silver traders were urged to participate in a short-term trade on the long side. Those who did realized quick gains. But the situation has changed rather rapidly.

Chart Of The Day: Funds pile into Silver, meaning price is going lower!

Hedge Funds Pile Into Silver

Source: Short Side of Long

Over the last week traders have been wondering why silver started to fall so quickly. After all, didn't a technical breakout just occur? The truth is that dumb money, in the form of hedge funds, has piled into the precious-metals sector -- especially into silver. The chart above shows hedge-fund contracts sitting close to 45,000 net longs.

Are we in for a classic shake out?

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