Consumers Are Comfortable As Gold Drops Amid Smart Money Big Short

This is an abridged version of our Daily Report.

Signs of intense comfort

Another survey is showing a high level of confidence among U.S. consumers. The Conference Board, University of Michigan and Bloomberg surveys are now all near multi-decade highs. When the two oldest are taken together, the surveys have only been matched once in history, in 1998-2000.

Gold’s miserable streak

For the first time in 20 years, gold has declined for 6 consecutive months.

Since 1975, it has happened a handful of times, and while the sample size is small, it rebounded 1-2 months later every time, with a highly skewed risk/reward profile.

Smart money’s big short

Hedgers in major equity index futures contracts are now net short $65 billion worth of exposure. That’s among their largest positions in history.

The latest Commitments of Traders report was released, covering positions through Tuesday

The 3-Year Min/Max Screen shows that “smart money” hedgers moved to another multi-year extreme long position in gold, as well as 30-Year Treasury and Ultra Treasury contracts, while establishing large short exposure to unleaded gas.