"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput


Wednesday, August 10, 2011

Gold Open Interest readings indicate a panic among some of the Bears

Please see the following chart along with the notations I have placed in it for some insight into the distress currently being felt by the gold bears at the Comex. This is one of the reasons that the price of gold has been moving up so sharply - forced short covering is occuring as panic sets in on the part of the bears. Only the strongest shorts are going to be able to sustain their positions in this type of squeeze. We'll have to see how far this wave of short covering can take things before all or most of the weak-handed shorts have been run out of this market. Things could get a bit dicey for the longs after that.

1 comment:

  1. and we are one hour after margin hikes and Gold price doesn't budge....???


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