Morning Gold Fix: July 22, 2010
Commentary courtesy of www.fmxconnect.com
Gold opened Thursday’s trading at
$1184.1 per 100 troy ounces. The metal gained early, and after breaking
through the 1200 barrier for the first time this week and peaking at
1201.2, Gold settled at 1195.6. Gold has opened to gains this morning,
once again moving over the 1200 mark.
The Gravity of Strikes
activity was befuddling to say the least. Personally, I thought the
1200 strike would act as a magnet going into options expiration, but
Wednesdays’ activity said the 1180 strike was going to be an issue.
Yesterday turned out to be a total head fake. The market may in fact be
beginning to price QE2 as every other market moved in tandem higher.
Maybe Gold just got the message late. We are still sticking to our guns
that the market is one that shows no reason to buy strength, but are
aware that there may be some bigger picture buying beneath the market
So we are back to our
original statement. The gravitational pull of these strikes is large.
Our thoughts are on the 1200 area, but we have “stops” at 1180. As time
moves forward , the gravitational pull will grow on wherever we are
closest. And based on today’s activity, 1200 seems to be growing in
strength. We rejected 1180 like a champ.
yesterdays chart, we have definitely turned a corner on daily stochs.
What we would like to see OI go up after today’s rally, then we will
buy into strength, otherwise this is just a bear flag formation. As for
me, I’m buying 1190’s and selling 1210s if I get the chance, I’m long
the 1200 straddle. In the meantime I’m rereading Jesse Livermore’s quotes to keep my emotions in this bizarre market in check.