gunDriller
18th February 2012, 08:22 AM
from Harvey Organ -
http://harveyorgan.blogspot.com/
"First the gold comex:
The total gold comex open interest rose by 2502 contracts from 438,174 to 440,676 contracts.On Thursday you will recall we had quite a reversal on gold and silver as these metals rebounded from their lows to finish slightly up. The bigger demand for metals caused our OI to rise. The bankers lick their chops every time they see higher OI as they try to remove these longs from their contracts. The front options delivery month of February saw its OI fall from 385 to 376 for a loss of 9 contracts. We had only 2 delivery notices filed on Thursday so again we lost 7 contracts to cash settlements or 700 oz. It seems Blythe has no other way to settle upon our longs except to offer them cash and a big fiat bonus. The next delivery month is April and here the OI remained relatively constant at 238,397 dropping by a touch higher of 200 contracts. The estimated volume at the gold comex was a miserable 116,731 as many investors are seeking their metal, or playing, elsewhere. No doubt the MFGlobal commentaries of late showing that customers will not receive any of their money is surely scaring people from playing at the comex in the USA. The confirmed volume on Thursday, the day of the big reversal registered 182,499 contracts but many of those were high frequency day traders."
Generally, I think Harvey Organ REALLY knows what's going on in the markets.
If it's true that longs are being "cashed out" - with a BONUS, it suggests a trading strategy -
1. sign a contract for delivery
2. take the cash + the bonus for not taking delivery
3. take the bonus money to your nearest favorite coin shop and LOAD UP.
4. take the "principal" and start a new position.
5. rinse & repeat.
If JPMorgue really is rewarding traders (notice I didn't say 'investors') for not taking delivery - that makes it tempting to 'play the game'.
Quite a profitable merry-go-round (MAYBE) for some of the traders.
Only problem is, the "principal"/cash that is tied up is not available for not buying REAL money.
http://harveyorgan.blogspot.com/
"First the gold comex:
The total gold comex open interest rose by 2502 contracts from 438,174 to 440,676 contracts.On Thursday you will recall we had quite a reversal on gold and silver as these metals rebounded from their lows to finish slightly up. The bigger demand for metals caused our OI to rise. The bankers lick their chops every time they see higher OI as they try to remove these longs from their contracts. The front options delivery month of February saw its OI fall from 385 to 376 for a loss of 9 contracts. We had only 2 delivery notices filed on Thursday so again we lost 7 contracts to cash settlements or 700 oz. It seems Blythe has no other way to settle upon our longs except to offer them cash and a big fiat bonus. The next delivery month is April and here the OI remained relatively constant at 238,397 dropping by a touch higher of 200 contracts. The estimated volume at the gold comex was a miserable 116,731 as many investors are seeking their metal, or playing, elsewhere. No doubt the MFGlobal commentaries of late showing that customers will not receive any of their money is surely scaring people from playing at the comex in the USA. The confirmed volume on Thursday, the day of the big reversal registered 182,499 contracts but many of those were high frequency day traders."
Generally, I think Harvey Organ REALLY knows what's going on in the markets.
If it's true that longs are being "cashed out" - with a BONUS, it suggests a trading strategy -
1. sign a contract for delivery
2. take the cash + the bonus for not taking delivery
3. take the bonus money to your nearest favorite coin shop and LOAD UP.
4. take the "principal" and start a new position.
5. rinse & repeat.
If JPMorgue really is rewarding traders (notice I didn't say 'investors') for not taking delivery - that makes it tempting to 'play the game'.
Quite a profitable merry-go-round (MAYBE) for some of the traders.
Only problem is, the "principal"/cash that is tied up is not available for not buying REAL money.