very interesting data from last night's COT report....
commercials (bankers) covered 42,000 short contracts on the dip below $US 1500 last week. That's the most short covering since the August 2008 panic when gold dipped below $US 800.
The covering is of the same magnitude seen July 2010 (41,000 contracts) with gold at $US 1200
I'm now looking for a wipe-out in open interest as speculators close long positions with a fall back to the 200 day moving average (1425/1450) in the next several weeks.... accompanied with a final wipe-out of Market Vane bullish consensus to 60% (we're almost there already actually)
The stage is being set for another big run in the second half of 2011, imo. Short covering could see the gold stocks explode higher.
