Monday, January 10, 2011
Gold This Morning: Uncaringly Late --Jon
http://www.biiwii.blogspot.com Active overnight trade and while only a couple of bucks higher for the most part, all of the selling has held in the mid-$1360's which other than last Friday's pre-NFP swoon of the sissies, was consistently a support level last week. Open interest as of Thursday (last report) remains a benign ~583,000 and again leaves us 10% lower than levels at last November's running of the bulls. The weekend COT release was interesting as large spec net longs were sellers and commercial net shorts were buyers more or less offsetting each other as they were counter their typical positions. Small specs were classical 'odd-lotters' getting the market wrong as they sharply increased long positions and covered shorts on a smaller basis, a perfect 'lose-lose' approach. This morning, GSR is unchanged at ~47.45 and RSI remains provocatively on the cusp of being compelling at ~43.78. Option vols for FEB's soon to expire instruments (2 weeks) are dithering at apathetic lows ~ 16.0 mitigating Potential strength with clear indifference. Today: no excitement unless we ease below $1365 or achieve the low $1380s.