If you are in Platinum now as I am, there are danger signs ahead, The latest commitments of Traders report was released, covering positions through last Tuesday. The report shows that smart money hedgers have moved to a multi-year short position against platinum. When this group of traders held more than 50,000 contracts net short over the past 8 years, platinum declined over the next 2-3 months every time, and the average loss was 9-13%.
Commercial Hedgers - Commonly believed to be the "smart money", are the traders who are involved in the day-to-day operations of each commodity. They have an excellent handle on the underlying market, and it typically pays to follow their positions when they reach an extreme.
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