Monday, October 25, 2010
Gold This Morning: Nobody Listens to Geithner --Jon
Active trade overnight right from the opening (1800 EDT Sunday) when it gapped a couple of bucks higher and then never looked back. GSR has eased back to ~56.70 and our favorite liquidity indicator is also reflected in early prices across the board in the hard and soft commodity space. The COT numbers for last week reflected the frisson of fear that seduced many last Tuesday. The long large specs were healthy sellers which was offset by a similar amount covered by large spec shorts. Commercials to the extent that they reduced shorts (very interesting from this cabal) ran counter to their usual MO. Small specs predictably got shorter. Open interest as of Thursday came in ~9.000 contracts and while still modestly elevated provides a firmer base for new arrivals (welcome!). RSI is modestly higher at ~57 and very supportive even with prices $20 higher this morning. Today: Markets as they should, when not being stroked by certain parties, cut through the odious spin that comes out of colloquia composed of deputations with disparate objectives, and this morning's move is a definitive verdict. From a technical perspective we have repaired the nasty damage from last week and now the hard work will be to chase the perpetrators.