MLSOFT,
I saw the COTs report (gold) from Friday and the commercials added to their short positions. My take on that is that they were fighting the trend, trying to knock the POG back down. That means they are now even more hooked than they were last week, and the squeeze is still on. It is important to note that Friday's action was not reflected in that report, and Friday was another day where they sold heavily to drive gold down, so the actual short position is even higher than on the report.
Nor was Wednesday or Thursday's....... <g>
FWIW, I'm not so sure I fully agree with you on that point as I am getting a respectful awareness of Sinclair's 'words' having potential market moving powers. Like Zeev, except much more so. <GG>
It is my understanding that Sinclair emailed many thousands (who have signed up for his Email alerts) of gold traders on Friday morning to take profits on 1/3 of their positions after the POG hit $348/oz. I think much/some of Friday's selloff may be attributable to that factor. Had I known that then, I wouldn't have been such an eager buyer of GG in the upper $12's. <GG> Needless to say, I am now on his Email list and I will keep the board posted on his calls. There are some astute gold traders here and I think we all stand to make some serious money before this golden bull gets slain.
It will be a contest to see which side has the staying power to enforce their will, and my money is on the longs. I believe they will get it done this time, unless the Fed steps in to bail out JPM, BAC, C and GS.
I have a gut feeling that some of the recent spike in the POG was due, in part, to some/all of the bullion banks you mentioned above (1) covering a portion of their Au hedges and (2) becoming buyers in the spot market to pay back some of the Central Banks who had previously loaned them X amount of gold to help supress the cash market.
These 'guys' aren't stupid .... They, too, must see their peril. Greenspan's speech couldn't be clearer (for a Greenspan speech, that is <VBG>)and I think the Bankers are now realizing for the first time that they aren't big enough to stem the tide of us greedy goldbuggers. You know what I mean, I'm sure. LOL!
Kindest regards,
Dan
Dan 
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