A few wise comments from a veteran trader...
Regards - VHF
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Another Dumping In Metals
J.B. Slear
November 26, 2010
US Dollar has been jammed up again as a safe haven from all the evils not Wall Street made (that’s what they want us to believe). US$ is at 80.435, up 74 points, with a top of 80.555 so far. Gold is down $12.80 at $1,360.20 with a bottom of $1,357.00. Silver is hit much harder (especially with 25+ RICO law suits already filed). Silver is down 85.3 cents at $26.675, with a bottom of $26.605. Today is the last trading day for Dec metals. This means that the contracts in Dec (Silver/Gold) are to stand for delivery. The numbers of today are huge against the COMEX inventory. 111,629 open interest in Dec Gold equates to 11,162,900 ounces, which is only $15,183,776,580. Chump change compared to the first TARP crap offered up. COMEX claims to have 11,452,429 ounces with only 2,622,475 ounces open for sale. “Houston we have a problem”. Silver is no different; Dec open interest stands at 30,651 contracts. Each contract is 5,000 ounces (this is huge btw), which equals to a demand of 153,255,000 ounces for delivery. COMEX claims to have only 107,233,329 warehoused. Only 48,555,988 is available for sale. This tells me someone is taking on the short positions, and if this becomes a fact, the end game is near (AKA default on the COMEX). Deliveries have been strong this month and no delays that we can see/heard (so far). Treasuries are still being hit with short term leading. Our Eurodollar trade made people money while they celebrated Thanksgiving and is still dropping. This tells me US$ are coming home. S&P along with the other paper markets are falling. Grains/Softs are lower. Those that have been involved in the Commodity industry over the years, know quite well how holiday trading works. These same traders have ridiculous orders already set against a panicking public liquidation (Black Friday purchasing on COMEX). Petro Products are correcting as well but only 1/4 of yesterdays move. Stay Strong!!
