Gold [well after] This Morning: State of Confusion -Jon

In spite of the extraordinary drop in open interest yesterday overnight volume is surprisingly meagre even if one adds in activity in the April contract. Let's go to the gold open interest story. It fell from 580,750 contracts at the close last Friday to 498,998 at the close Monday, 14.1%. I have never seen a daily change remotely close to this magnitude. We shall certainly see in the next COT report whether the change was driven by specs or commercials but suffice to say that either there was massive short covering within Monday's volume or significant liquidation. A rumor from the pit was a that a certain large prop trader was 'carried out'...visions of a Viking burial. The facts remain unchanged and supportive, GSR essentially unchanged at ~49.3 and RSI remains at a trampoline like level ~34.60. Throw into the mix the open interest drop, the ultimate stamp of moldy sentiment and we have all the basic ingredients if only someone could send the invitations to the party. Speaking of parties, last night's adults only version of Romper Room seemed very warm and fuzzy which will probably continue to keep our audience sedated. Next year let's see if we can hire a better magician, the slight of hand was obvious.  http://www.biiwii.blogspot.com