Re Gold’s move yesterday – there was something to it. Check this link if you haven’t seen the story, http://af.reuters.com/article/metalsNews/idAFN2127057720101221
Elsewhere the wall street journal has corroborated a story covered previously by zero hedge that a single trader owns 80 to 90% of the copper sitting in the London Metal Exchange, perhaps this is some sort of hedge against losses from short positions in the silver market. JP Morgan is the house associated with these stories in publications mentioned above and elsewhere. The coming regulation seems to be forcing some position licquidation - makes for good reading if you are in inlined - google - CFTC Bart Chilton.
Chart below shows that the MACD on the daily charts crossed yesterday indicating the down trend has ended on the daily outlook however that could be temporary given the weekly picture. But because the move has been so severe and the extreme oversold condition of the market noted – long positions with trailing stops the general idea.
In 10's a couple of houses bought the Feb. 121/122.5 c 1X2 spread - paying 13 up to 15 for around 8K. In ED options New edge bought about 5K of the EDM1 9912/9913 p spreads for 3.5 ticks. Otherwise not much going on.
May be off tomorrow - if so Merry Christmas to all.
probably not much till Jan. Volume has been dwindling.
Posted by: trading ideas | 12/24/2010 at 12:38 AM