BREAKING NEWS: GOLDMAN SACHS GETS OUT OF DODGE!

WOWSA big news today

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BREAKING NEWS: GOLDMAN SACHS GETS OUT OF DODGE!

In the April 16 session on the TOCOM GOLDMAN Sachs COVERED a simply gob-smacking 8,302 short contracts to bring their short position to 23,019 contracts. This is the second time in 5 weeks that they have made a massive one day short covering. The last time was on March 6 when they covered 7,878 contracts. This brings their short position to the second lowest since I started recording the daily data on Jan 13, 2006. On that day their net short was just 470 contracts lower at 22,549 contracts. These sudden massive coverings are against a generally rising gold price indicated by trend channel #3 in yellow. This is VERY UNUSUAL; you can see from the graph below that the GS short position correlates almost perfectly with the gold price. As the price rises their short position rises as it falls their short position falls. The only other time where there are massive and rapid reductions in shorts was in the first half of 2006 where gold was rising inexorably to $740. It looks to me that thi

Was it a coincidence that there was talk this weekend of IMF gold sales which has the effect of stampeding the weak longs? I think not! Was it any coincidence that it was the Japanese Government that endorsed the notion of IMF gold sales and it was the following morning on the TOCOM (Tokyo Commodity Exchange) that Goldman Sachs covered 8,302 short contracts? I think not!

Stay tuned, things are going to get real exciting.
Cheers



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