The Battle of the Resolute Longs and the Paper Shorts is on!

in investing •  3 months ago  (edited)

  Great and Wonderful Thursday Morning Folks,    

      Gold is trading slightly higher with the current price at $1,386, up $37.20 but only after it reached $1,397.70 before being calmed down with the low and starting point at $1,361.30. Silver is up as well and not really sure who is leading with its trade at $15.465, up 43.30 cents and close to the high at $15.47 with the low starting at $15.19. The US Dollar finally lost some of that foreign buying support with its trade now at 96.165, down another 41.7 points after losing 57 points yesterday just after the FOMC report came out. Of course, all of this has already happened while we slept, before 5 am pst, and before the London close.    

      As can be imagined, Gold trading under the emerging markets is like watching a rocket launch with all that force pushing the real money payload sharply higher with Gold under the Venezuelan Bolivar at 13,842.68, gaining 400.5 since yesterday’s report with Silver now priced at 154.457 Bolivar, gaining 5.593 as well. The Argentinian Peso, which has not lost any zeros (yet) now has Gold pegged at 60,067.87 gaining 1,528.26 (X 100 ounce contract) in the overnight with Silver gaining a gob smacking 21.878 (x 5,000 troy ounces per contract). In Europe, the Turkish Lira now has Gold priced at 7,966.70 T-Lira, a gain of 86 Lira with Silver gaining 1.6107 at 88.9086 T-Lira.    

      As we've continued to repeat, the Commodity Sector has a great equalizer called physical deliveries. When demand exceeds supply, it becomes a buy. With the mining sector being gauged with debt instruments and supply demands to the exchanges being part of the control, we have to observe the levels of demand in order to prove there is an issue. Especially when almost everything else about precious metals is a secret not to be revealed. June Silver’s deliveries had a huge jump in OI last week, and with no sales all week so far, with today’s early morning count showing 33 orders waiting for physicals and again, with Zero Volume or Price posted up on the board, proving 206 contracts got receipts for physical. The Resolute Longs are still holding strong as the Over All Count for Silver added another 73 obligations to the mix with the total now at 239,058 Overnighters still in play. We’re only 4,353 contracts away from making a new paper high and at the cheapest of prices for any product.    

      Today is the Triple Witch Day. Under my over 20 year study on the precious metals and the TW quarterly activity, the precious metals almost always get clocked and hard. This time may be different, I know, I’m sick of hearing it too, but the Resolute Longs, that physical buyer, and the fact that all those deep in the money options just gained a few thousand more “Deep In The Money Calls” (from $15 up to $15.40), we might be seeing some more upside. We will leave room of course for the Resolute Longs to take the money and run, but at the same time, we’ll be watching for the Commercial Signal Failure, which will make this day’s early morning price move seem like nothing to compare to. 

      So fasten thy seatbelt and hold on tight! Because the Battle of the Resolute Longs and the Paper Shorts is on! Next week, the July Option come off the board making the next few days trades, interesting. Enjoy the day, keep the attitude positive in the head no matter what, and as always …   

Stay Strong! 

J. Johnson  

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We now have a Volume in June Silver of 94 with an Open Interest of 33 as of right now. What I cannot confirm is if this is an additional 99 or if its 67 to the 33 that all got receipted today, all this still with no prices offered. Regardless, they buyer is still sticking it to them where it counts the most! Right in the Deliveries!

Stay Strong

Looks like out buyer keeps adding one at a time, we're now at 95 Volume with 33 Open Interest and no price.