I'm behind schedule and in trouble. Sorry for the quick post. More Sunday when I return. First, though, please check out these items I have for you.
First of all, the short-covering continues in the PMs. Yesterday, while gold was rising $26, the total gold OI was falling by over 1000 contracts. Again, since it is nearly certain that some new longs were added, how many Cartel shorts were covered? 3000? 5000? The question is: Why is the Cartel covering here and will they continue (like August)? The trend continues in silver. Price rose yesterday by 60 cents or so but total OI fell again by 500 contracts. That's $1.75 (5+%) in gains over the past two days while total OI has fallen by 1000 contracts. This is very exciting! With each passing day, the possibility is increasing that I will be proven correct about EE intentions in 2012. Watch the latest "Wicked Witch" video again for a reminder.
OK, here's your homework assignment for the weekend. There are two links below. The first one I found at the Mises Institute website and it discusses the idea of a "liquidity trap". It certainly sounds plausible to me. What do you think?
This next article is also very interesting and thought-provoking. Written by FOFOA, it is a fantastic discussion of some "gold standard"-type ideas. I must warn you, this stuff can be a bit mind-numbing so, hang in there. It's well worth your time and effort. Again, I'm curious to see your thoughts and feedback in the comments.
We've had a great week and the metals are going out strong, particularly gold. I'll try to find some time to chime in through the comments section once I see the CoT numbers tomorrow. They likely won't be too crazy as they are basis last Tuesday. Next week's CoT should be very, very interesting.
Have a great weekend! TF