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Gold This Morning --Jon

|Includes: SPDR Gold Trust ETF (GLD), SLV
Modest and directionless overnight turnover imparts that lulling temperament that we could go sideways particularly when you add up the current market facts that the GSR is slightly easier (liquidity +), option vols are unchanged, RSI is up a tick but again well below the overbought range of last week. Well, wake up Little Susie there are a number of swirling eddies and counter currents below the shoals. Open interest after Wednesday's butchering came in ~8,000 contracts clearly a sign of short covering on a day we were down $36 bucks on DEC volume of over 250,000 contracts. My unease is that the shorts are our contrarians and they seem to be less evident lately also within the gold option open interest where this morning various DEC and FEB round number options I checked were heavily skewed to the call side. While we do not typically follow the listed ETFs for precious metals you should know that recent put/call option ratios on these instruments has fallen lately. Of course in a market place where one push of the button can make a meaningful change in direction I don't want to overstate concern but be alert to too many people moving to the same side of the boat as we enter the hopefully festive year-end window.

Disclosure: No positions mentioned