Gold This Morning: Strong Message to Follow --Jon

Heavy overnight trade within a $9 buck range (basis April now, of course) vacillating intermittently between selling and buying forays that to some might look weary and tiring but to a trader (and long-term holder) this sclerotic coda is easily diagnosed as a distribution phase in its final throes. I am particularly comfortable with my prognosis since gold open interest sharply fell ~15,000 contracts Wednesday to a total of 491,222, a level we haven't seen since latish 2009. If in fact we are close to a stasis of short-sellers and sissies and I remind you that commercials have indeed been net buyers for 3 weeks then you certainly should not be sellers here. The rest of the facts: GSR slightly elevated at ~49.10 and RSI now under 30 which puts it in the bungee cord category. April options with ~60 days to expiration offer cheap entry at ~16.5 volatility and as I occasionally remind you these are to be hedged only unless you are keen to bet with the few people still standing who claim in the back pages of Soldiers of Fortune magazine that great wealth can be made with naked commodity options. Have a good weekend.  http://www.biiwii.blogspot.com