Great and Wonderful Monday Morning Folks,
The Triple Witch Week is over and now the fun begins with Gold trading slightly higher at $1,526.50, up $11.40 and close to the high at $1,528.70 with the low at $1,517.90. Silver seems to be leading at the moment with its trade at $18.47, up 62.1 cents with its high close by at $18.495 with the low at $17.99, hopefully we’ll never see that low price again. December’s US Dollar is also finding support with its value pegged at 98.335, up 19.9 points after reaching 98.455 with the low down at 98.07. All of this happened between the Sunday night open, the Comex open, and the London close.
We see nothing but green prices across the board in our emerging markets currency watch. In Venezuela, Gold’s price is now at 15,245.92 Bolivar showing a gain of 167.79 since Friday mornings report with Silver now at 184.47 Bolivar giving the people stuck under that fiat a 5.594 Bolivar gain. In Argentina Gold is now priced at 86,500.31 Pesos giving “those that know” a 1,179.81 Peso gain with Silver also gaining 34.51 Pesos. This is a 172,550 A-Peso gain in one day inside a single futures contract. In Turkey, the Lira now has Gold pegged at 8,733.84 showing an increase of 127.39 Lira with Silver gaining 3.58 Lira with its price at 105.68.
September Silver’s Delivery count has dropped off quite a bit on Friday with this morning’s count now at 53 fully paid for 5,000 Ounce Contracts waiting for receipts and with a Volume of 44 up on the board inside a trading range between $18.265 and $18.21 with the last purchase being the high so far proving a gain of 52.7 cents.
Even with our price jump Silver’s Overall Open Interest rose even more with the count now at 211,837 Overnighters proving an additional 641 more contracts had to be added in order to keep Silver from moving higher. Please keep in mind this number is a live count done while we write. The idea here is this early morning count may be a way to gauge the daily game the shorts need in order to keep the price rise from not blowing thru their Algo’s control. Compare the early morning count with the official Friday closing (all nightly Comex closings) count to observe the before/after Comex antics, it may help.
The October Call Options count in Silver should have been showing signs of reduction over this past week’s sideways movement but alas, it remains an increased interest (at least to me). Last week’s OI total was 23,308. As of Friday, the total count stands at 25,088 in Open Interest showing a gain of 1,780 additional purchases that are supposed to expire this Wednesday. As of Friday’s count 6,821 Call Options were “Deep In the Money”, (meaning the prices swings are just like a futures contract) and below the $17.50 strike. It may mean nothing, but I’m still at the edge of my seat waiting to see what will happen at this Wednesday’s closing and Thursday’s opening at the Comex. The October Futures Open Interest, may be an interest.
November Silver’s Call Option Open Interest as of Friday afternoon’s closing, shows a total of 15,422 held Calls proving an increase of 2,631 from the previous week’s numbers. Inside this total count, the “Deep In The Money Options” show 2,479 held Calls below the $17.50 strike, in addition the totals increase to 3,731 at and below $18.00.
December Silver’s Open Interest also gained with its Friday closing total at 85,578 proving an increase of 3,253 more purchased Calls from the previous count. Inside this count we have a total of 15,120 “Deep In The Money Calls” at or below the $17.50 strike with a total of 20,555 at or below $18.00. My oh My, one day these Options will matter immensely, until then we wait with our purchased Calls in place.
The end of our Federal Governments fiscal year is next Monday. So this week may be all about balancing out everything as we enter the Fall Season today. Have a great day, keep a smile on your face and a positive attitude in the head no matter what, and as always …