What is a "Weak Long" ?

[gunDriller]

again from Harvey Organ's blog -
http://harveyorgan.blogspot.com/

"Gold closed down by $7.80 to finish the week at 1187.70. Silver however did not follow its wealthier cousin, it remained unchanged at 18.11 refusing to go below the 18.00 mark.

The open interest on the gold comex fell considerably with Fridays reading down 6485 contracts (basis Thursday) to 552,377.

The silver comex Open Interest behaved differently, rising by 1568 contracts to 117,862.

It looks like we have reached the rock bottom stage in OI with respect to silver where no amount of bank intervention will cause the longs to liquidate.

In gold we still have some weak longs that refuse to understand the criminal nature of how the banks operate."


OK, let me see if I understand this. They are weak because they sell when the price falls below a certain level, which possibly further facilitates the downward price movement ?

So I guess by "weak" he means, a speculator or other market participant who gives up a long position ?

[Saul Mine]

By definition, a weak long is someone who has paid for his holdings but is easily forced to sell.

[BrewTech]

By definition, a weak long is someone who has paid for his holdings but is easily forced to sell.


There ya go. Definition served up hot 'n tasty!

[gunDriller]

i thought a short was someone who was offering to sell at a lower price.

which, to me, implies that they have it to sell. i.e. possession.

as far as naked shorts, i think of them as an aberrant short, selling metal they don't have.

so both longs and shorts have possession ?

i used to think a long was someone who was buying - and a short is someone who is selling.

[Saul Mine]

I was so tempted to answer "seven days!"

[mamboni]

A weak long is someone who has purchased long contracts with leverage/debt. He might be compelled to sell his contracts if the price drops below his buy price and he cannot pay the additional margin.

[PatColo]

I always thought of "weak longs" as those who don't have alot of confidence in their long position, so they're ready to sell for any reason or no reason. Perhaps they'll sell with a small gain, or loss, but they're basically just looking for a reason to sell to cure their anxiety over the position. Certainly being overly leveraged can be at the root of their anxiety, but doesn't have to be, a "weak long" doesn't have to be "easily forced out", they just have to lack the confidence that they're on the right side of their trade.