Thursday, September 2, 2010
Gold This Morning - Lull Before the Storm --J
Sloppy trade reflecting the long upcoming weekend with market activity as inexact as the instant media storm-trackers. The numbers show a nice pop in open interest of ~14,000 contracts on Tuesday indicating that the 'pop' after the opening that day was more new money as opposed to short covering. GSR has eased to ~64.10 and nice to see that, after yesterday's trade gave up about $10 bucks from the highs. Given the long weekend with many participants either away or in bunkers it would be a surprise to see much drama. RSI on the DEC contract has climbed to 67 which gets us close to overbought, option volatilities remain very low, and option put/call ratios are benign. Bottom line: No particular drama in the numbers and we held well yesterday...enjoy the weekend.