http://www.biiwii.blogspot.com
http://www.biiwii.com
Reasonably active overnight turnover was not quite an, in your face ace, to the corrupt and flagrant bear raid on silver and gold yesterday afternoon. That depraved and clearly orchestrated selling took gold down ~$20 bucks in a metaphorical blink, tripping stops, and also exposing expiring silver option holders who may have elected to exercise (careful what you wish for) to nasty margin calls. Let's go to the facts first before assessing our weekend options. GSR remains stable ~42.70; gold open interest rose ~2,000 contracts to ~504,000; RSI dropped ~15 handles during the swoon and we are currently at ~63; option vols were similarly smoked and continue to remain compelling and cheap ~14 this morning. There is no need to elaborate on the crumbling street fairs and parades around the world; they are well documented with appropriately emotive market reaction but for the apparent exception of the USD. Where is our erstwhile safe haven? As I remind you from time-to-time, Ben Graham, called the market day-to-day, a voting machine and the USD constituency clearly seems to be beating a path elsewhere or perhaps the man behind the screen intends it that way. Why not begger your neighbors when they are otherwise distracted? Well, you can see where I am going with this, a weekend reminder that gold is money.
