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The Net speculative length is finally coming off, if only by a little bit.

The recent contraction in length looks like a tiny “blip,”


which is amazing considering the rapid and fairly dramatic sell off. Still lots of bulls in this market…

350000

Net Speculative Length in Gold


300000
(Comex Futures Contracts)

250000

200000

150000

100000

50000

-50000

-100000
1/2/01
5/2/01
9/2/01
1/2/02
5/2/02
9/2/02
1/2/03
5/2/03
9/2/03
1/2/04
5/2/04
9/2/04
1/2/05
5/2/05
9/2/05
1/2/06
5/2/06
9/2/06
1/2/07
5/2/07
9/2/07
1/2/08
5/2/08
9/2/08
1/2/09
5/2/09
9/2/09
1/2/10
Source: CFTC
Andy’s Technical Commentary__________________________________________________________________________________________________
10
8.89 Ratio of Speculative Longs vs.Shorts (CME) ~ 29 Dec 09
9

7
5.87
6

5 4.59

4 3.52
2.88 2.68
3

1 0.75 0.68 0.62 0.51

0
Mexican Gold Silver Canadian Aussie New Euro Swiss Japanese British
Peso Dollar Dollar Zealand Franc Yen Pound
Dollar

Source: CFTC
Andy’s Technical Commentary__________________________________________________________________________________________________
16
Ratio of Speculative Longs vs.Shorts (CME) ~ 12/15/09
14 13.47

12

10

8
6.08
6
4.66
4 3.2
2.82 2.65
2 1.21 1.18 1.01
0.5
0
Mexican Gold Silver Aussie Canadian New Japanese Swiss Euro Britis
Peso Dollar Dollar Zealand Yen Franc Poun
Dollar
Source: CFTC
Andy’s Technical Commentary__________________________________________________________________________________________________
DISCLAIMER WARNING DISCLAIMER WARNING DISCLAIMER

This report should not be interpreted as investment advice of any kind. This report is technical
commentary only. The author is NOT representing himself as a CTA or CFA or Investment/Trading
Advisor of any kind. This merely reflects the author’s interpretation of technical analysis. The
author may or may not trade in the markets discussed. The author may hold positions opposite of
what may by inferred by this report. The information contained in this commentary is taken from
sources the author believes to be reliable, but it is not guaranteed by the author as to the accuracy
or completeness thereof and is sent to you for information purposes only. Commodity trading
involves risk and is not for everyone.

Here is what the Commodity Futures Trading Commission (CFTC) has said about futures trading:
Trading commodity futures and options is not for everyone. IT IS A VOLATILE, COMPLEX AND
RISKY BUSINESS. Before you invest any money in futures or options contracts, you should
consider your financial experience, goals and financial resources, and know how much you can
afford to lose above and beyond your initial payment to a broker. You should understand commodity
futures and options contracts and your obligations in entering into those contracts. You should
understand your exposure to risk and other aspects of trading by thoroughly reviewing the risk
disclosure documents your broker is required to give you.

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