No time for a complete post this morning but there are several items to which I'd like to draw your attention.
First of all, The Turd is like most everyone else...I enjoy a little notoriety. Someone emailed me a notice that I had been mentioned in FOFOA's latest column. Naturally, I went to the site and read it. It turns out that this is a very good piece and something you should definitely take the time to read.
The article makes several references to Santa's recent interview on KWN. Again, if you haven't yet taken the time to listen, I strongly encourage you to do so.
After the $50 drop yesterday, let's all be on the lookout for the OI numbers when they are reported this afternoon. If what I suspect is correct...namely that the "MFG Rehypothecation Awareness Program" and strongly negative lease rates were to blame for yesterday's drop...then I would expect to see a drop in OI on the order of 5000-10000 contracts, maybe even more. Why, you ask? The Cartel short position probably finished flat to down a little, day-over-day, as the new shorts that were added at the open yesterday were covered late in the session as gold moved off of its morning lows. The spec long position likely declined considerably for the reasons discussed back on Sunday night. Namely, in the wake of the "MFGRAP", why would anyone own paper metal???
One more thing on OI. Harvey has been drawing attention to the growing OI of the Dec11 contract:
"In another shocker, the front delivery month of December mysteriously saw its OI rise from 1356 to 1545 for a gain of 189 contracts despite 276 deliveries on Friday. Thus we gained 465 contracts or 46,500 oz of gold standing." http://harveyorgan.blogspot.com/
This is a very intriguing development and must be watched closely. As I understand it, to "jump the queue" at this point and purchase a Dec11 contract, an entity must immediately put up 100% margin with the intent to take delivery. To add 465 contracts this late in a delivery month is highly unusual. That's about $79MM in gold that someone is trying to buy, and take delivery of, as soon as possible...not wanting to wait for February. A very intriguing development, indeed.
More later. Be safe. TF
p.s. Several folks have asked me for a crude oil chart. Here you go.
And I forgot to include this. More fuel to the reports of US troops in Jordan. Do you think Assad believes they are "defensive" in nature after seeing Afghanistan, Iraq and Libya fall? What are the chances he just idly sits and hopes for the best?