As we get ready to head into 2017, banks now have near all-time record long positions in a major market, plus a look at gold.

The following charts are from SentimenTrader.

Commercial Long Positions Near All-Time Record!
The commercials have continued to dramatically increase their long positions in the U.S. 10-Year Treasury market to near all-time record levels (see stunning chart below).

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For a longer-term perspective, below is a 23-year chart of commercial positions in the 10-Year bond market (see remarkable chart below).

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The commercials have continued to cover short positions in the gold market (see 10-year chart below).

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For an even longer-term perspective, below is a 23-year chart of commercial positions in the gold market (see chart below).

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The COT report has not moved into a bullish position as of yet because the commercials are still short gold in terms of a historic basis, but it is possible the gold market has seen its bottom, and on a short-term basis, even bonds.  We will have to see how the metals and bonds trade in the coming weeks and if they can break out of their respective downtrend channels.  Regardless, the sentiment is extremely negative and that is very bullish from a contrarian perspective.  If you are accumulating physical gold, just continue to purchase at the normal time each month if you are dollar cost averaging.  Stay disciplined and don’t try to outsmart the market.

***To listen to the fascinating KWN audio interview with Stephen Leeb, where he discusses the outlook for 2017, the gold and silver markets, what is really happening with China, and much more, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

***ALSO JUST RELEASED:  The Big Picture As We Head Into 2017 CLICK HERE.

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