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.
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The post titled Consumers Are Comfortable As Gold Drops Amid Smart Money Big Short was originally published as on SentimenTrader.com on 2018-10-01.
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