My Question To Hege Funds Short Palladium As Michael Burry Buys Gold With Sprott PHYS ETF

This is a message for hedge funds short palladium futures:

I believe you are taking a wild risk now and should close your positions before an inevitable short squeeze smacks you in the face. It may not happen this week or this month, but one day it will come.

Look at the CFTC report from last week!

There is a record hedge fund “managed money” short position on Palladium, while the large “smart money” commercial swap dealers and producers have a huge net long position.

Despite that, “managed money” players actually increased their short position last week, according to the CFTC report!

I know hedge funds like to play momentum and tend to pyramid long positions during bull trends and short and short more as something declines, but palladium has been in a stage one base now for months and appears poised to go into a stage two bull market soon, to follow the price of gold and silver up, and other metals like copper!

Palladium made a peak two years ago - that was the time to short.

Not now, two years after a peak.

In fact, I think you are positioned so wrong on this that when you and your friends buy to cover you’ll help make the price go up even more. As a result, I bought the PALL physical palladium ETF in one of my accounts yesterday.

It’s a small position, because it’s a small account.

But, I think it’s the right side of this market now!

Michael Burry is buying gold and palladium is part of the same precious metals complex that gold and silver are in.

Look, the giant commercial producers and dealers in the palladium market know a lot more than you or I do when it comes to palladium, because it’s their life.

They mine for it, and they deal it, and they are almost always net short, because they usually use futures to hedge their real world operations.

They are not price speculators, so when they are net long like this it is significant.

What are you hedge funds pressing your palladium shorts thinking?