It is for this reason that I cannot report on the open interest until I know for sure if it is correct. It is very important in the analysis]
and I do not want to give a false impression as to what is transpiring.
We got the COT report for gold and silver.
Here is a summary for gold:
If you look closely you will see some liquidation by the specs of 13918 contracts as the raid on Monday and Tuesday of this week caused some of
the weaker longs to vacate. However you will notice that the shorts covered in two categories:
1. the long specs
2. and the commercials who covered by a huge 10933 contracts.
However, note that the new paper did not come from the commercials but from the small specs to the tune of 6289 contracts.
Somehow the commercials are realizing that the steam room is getting to too hot and that they had better lighten up on their shorts.
OK lets go to the days story.
Today, we saw a massive liquidation in stocks as investors were worried about earnings and the CIT bankruptcy and what effect
it would have on Main Street. (the report on the pending CIT bankruptcy is reported on in this commentary)
The huge drop on the Dow caused collateral damage to gold and silver shares, it caused a drop in yield on the bonds
and a huge drop in the CRB.
Here are some numbers for you to peruse:
The employment cost index rising by .4% is getting a little inflationary. The Chicago Managers index is good as it indicates activity is picking up
in the midwest. However the employment component of the index fell which generally means if a recovery is on, it will be a jobless recovery. This is not good.
The Michigan Confidence number rose slightly in the month..nothing to get excited about.
However at 10 o'clock they released the national sentiment and instead of rising in fell badly:
The last manufacturing area to report is the Milwaukee area and lets see how they did:
This number is really bad. Manufacturing stopped all of sudden like one gigantic thud!!
Here is our report on our inflation outlook for commodities for next year:
Many commented to me on the story that all the gold ever mined from the beginning of time until now will fit into 2 Olympic swimming pools.
That is true.
Here is the scientific proof of that:
Wilbur Ross, the huge billionaire investor came out with this today. Wilbur Ross was selected by Obama to help purchase
the huge toxic assets on the balance sheet of the banks. It looks like Wilbur is not happy what he is seeing!!!:
We are now getting confirmation that the CIT bankruptcy will be announced on Sunday. The real question mark was whether
CIT will resume factoring to Main Street as a zombie financier or would it be put out of its misery!.
It looks like it will be an orderly bankruptcy but it will hurt Main Street big time. Here are the big stories on this issue:
If developments occur throughout the weekend, I will bring a report out on Sunday.
If nothing earth shattering occurs, I will report on Monday.
Have a wonderful weekend
all the best