Friday, March 25, 2011
Gold This Morning: Violation of COMEX No-Fly Zone --Jon
Timid overnight trade after a concerted wing of organized sellers swooped in with a raid yesterday around 1230 strafing COMEX pits in a desperate attempt to disrupt the perseverance of gold's determined and well-reasoned buyers. We did caution you yesterday morning on the possibility of a frantic blitz by the dark side under the cover of the APRIL-JUNE roll and the APRIL options expirations and indeed they again lived up to their stale reputational predictability. This piracy, while provoking an inter-day high to low $25 collapse (and a few panicky calls), hardly grazed our plucky band on a technical basis and again showed gold's hardened resilience. The facts offer sinewy support of the growing impotence of the sellers as GSR and RSI remain virtually unchanged. Gold open interest came in as of Wednesday by ~4,000 contracts leaving us with a total of ~505,000 hard core defenders. Today: The roll and option expiration should continue to agitate trading activity through early next week and when in doubt close your eyes and think of Lisbon, Dublin, and Dallas Fed President "Tipping Point" Fisher.