Sunday, November 22, 2009
GOLD CHOPPING SIDEWAYS IN THE RED DOWN FLAG, COULD BREAK HIGHER OR FALL ON PROFIT TAKING
THE PULL BACKS IN GOLD ARE GETTING SHALLOWER.
SO IT'S HARDER TO GET A DEEP PULL BACK TO BUY IN
IF YOU SELL THE TOPS.
SEE DAN NORCINI'S COMMENTS FROM FRIDAY ON
THE SWISS STAIR PATTERN THAT HAS FORMED.
THIS IS A VERY BULLISH PATTERN AND THE LENGTH
OF TIME BETWEEN UPWARD MOVES IS BECOMING SHORTER
BETWEEN EACH CONSOLIDATION AND UP MOVE.
GOLD IS READY TO GO BALLISTIC SOON.
SUNDAY EVENING GOLD OPENS UP TO A NEW HIGH ON STRONG VOLUME PULLS BACK INTO THE RED DOWN FLAG, RETRACES 75% BACK UP AND IS NOW RETRACING BACK DOWN
A SUDDEN UP MOVE JUST WHEN IT LOOKED LIKE
GOLD MIGHT BE MOVING LOWER ON PROFIT TAKING
IT MAY STILL.
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.
DECEMBER GOLD OPEN INTEREST = 238 K
OPEN INTEREST WILL STEADILY DECREASE IN
DEC GOLD RIGHT UP UNTIL FIRST NOTICE DAY
ON NOV 30 WHICH DECREASES THE LIQUIDITY OF
THE CONTRACT SOMEWHAT, ALTHOUGH FRONT
MONTH CONTRACTS TRADE QUITE WELL RIGHT
UP TO FIRST NOTICE DAY
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