Yes folks, it's warnings season and that means plenty of volatility and, several key support levels about to face some stiff challenges. Small specs are the general trading public with commercials being financial institutions. Commercials are historically on the correct side of future trend changes while small specs are not. Extreme divergence between each signals a possible market turn in favor of the commercial trader's direction. Small Specs cut back dramatically on the DJIA net short positions while adding to their net-longs on the tech index.
Commercials are end users of gold and are hedging current inventory purchased at lower prices.
Commercials have been building extreme net-long position in this industrial metal, a bullish sign for economic health. Commercials are looking for lower interest rates, lower gold and higher copper prices based on their positions here. Of particular notice was the switch in gold from net short last week to net short this week, a warning sign that large users are now selling into the current retail rally.