Our research for TraderPlanet this morning suggests that the decline in silver may be nearing an end which could spring the mother of all short traps. The weekly Commitment of Traders report has shown commercial traders are exceptionally bullish at these prices and the trends on the chart suggest that December silver futures may not reach their downside objective thus forcing many small traders and trend followers to finally exit their short silver positions.
The treasury markets have been stuck in a sideways trading pattern since the Federal Reserve Board’s announcement that they would begin tapering off the additional stimulus with the intention of completing their stimulus additions by year end.
The corn and soybean futures markets have both followed the same paths this year and both markets are seeing substantial commercial trader support. The primary reasons for the strong commercial buying in in these declining markets have been high cattle prices and the unexpected decline in the US hog population. We discussed the details as well as the current Commitment of Traders Buy Signal this morning in November soybeans in this piece for TraderPlanet.