A few comments from Uncle Jimmy's favourite trader...

Regards - VHF

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Triple Witches are upon us

J.B. Slear

December 15, 2010

And so we go another round of pullback. Organized and efficient in what many are claiming is manipulation. How can it not be called that? I’ve been watching the goings on in my play ground (the deliverable months of Gold/Silver). I keep low because I don’t wish to jar the buyers, for they are doing us all a great favor by buying whenever a pullback occurs. In fact we have buyers that came in in size from last nights trades to this morning in Gold. Yesterdays close showed open interest in Gold of 815 contracts waiting to be delivered (81,500 ounces). As we view our dip, we see that open interest has jumped to 859 contracts. This does not show all the purchases made, but proves someone in size is forcing the hands of the bankers to come clean. We feel the Central Banking system will eventually default, but only when they are in position to profit from it too. Stay close!!!

US Dollar is higher by 17.5 points at 79.865 with a high of 80.220. Gold is lower by $11.20 at $1,393.10 with a bottom of $1,386.60. Silver is also being chased lower, now trading at $29.265, down 53.3 cents with its bottom of $28.925. Btw, no purchases in Silver for delivery has popped up yet today, so I expect another attempted drop before we see a real buyer pop in. Treasuries are mixed, seems the FOMC minutes confirm the facts that this ….idea … of economic control is exploding. Crude Products are lower, Grains are higher, Softs are flat to lower and our lovely Paper Market collection (S&P, Dow, NASDAQ) is falling. The best time to buy into the precious metals market will be either tomorrow or Friday (solely based on my Triple Witch Week studies) …. Stay Strong!!