Thursday, January 6, 2011
Gold This Morning --Jon
Active overnight trade maintained the supportive levels achieved off of yesterday's lows until around 0430 this morning...there was clearly good buying and based on Tuesday's pop of ~8,000 contracts in FEB, open interest would indicate new money. GSR is very slightly elevated ~47.15 and RSI is compellingly lower almost with a 'come hither' stare at ~43.80. London town, our consistent source for the market's most unreliable rumors, is now back in business after their annual excuse for extended holidays so other than Orthodox Christmas tomorrow most manipulators/players are back in full fading mode. The whisper du jour making the rounds is the squeeze against reputed PM shorts will be on (again?). This of course handily reaches our ears 2 days after the 'gold trade is off' story which led to Tuesday's massacre, so we have all the ingredients for a periodic pastiche. Today: Deal with the facts please; they are market supportive and we have also reached that time of the month when the looming FEB expiration comes into play. FEB option put/call ratios are higher than usual providing further casual support for a squeeze.