Saturday, November 21, 2009

FEBRUARY 2010 GOLD (soon to be new Front Month contract on Dec 1st) OPEN INTEREST = 162K


OPEN INTEREST WILL INCREASE IN FEB 2010 CONTRACT AS IT
DECREASES IN DEC 2009 CONTRACT. (called rollover)
THE NEW FRONT MONTH CONTRACT TRADES VERY
SLUGGISHLY RIGHT UP TO THE ROLL OVER THE DAY AFTER
FIRST NOTICE DAY MAKING IT MORE DIFFICULT TO
TRADE IN AND OUT DURING THE DAY.
BID AND ASK PRICES AREN'T AS 'TIGHT', OR CLOSE
TOGETHER, AND THE VOLUMES AREN'T AS GREAT
AT EACH PRICE POINT, UNTIL FEB2010 BECOMES THE
FRONT MONTH. STILL, YOU DON'T WANT TO GET CAUGHT
IN A LOSS POSITION IN A DEC 2009 CONTRACT AND BE
FORCED OUT ON FIRST NOTICE DAY. SO, TRADE FEB 2010
GOLD CONTRACT STARTING THIS MONDAY AND AVOID
PROBLEMS.