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Year-end is the most important time of the year for optics, otherwise known as “window-dressing”. The shorts need to keep precious metal prices down at year-end to make their positions look good, which really means making their balance sheets look ‘less bad’, given that their positions in all likelihood are already deep underwater. So rising gold and silver prices this week are a good indication that the shorts are in big trouble.
Gold
1) Long from $1405.20 bought on the Comex spot gold close on December 28, 2010. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1394.00. If stopped out, then re-buy this position if the Comex spot price the same day closes above $1394.00. (updated 29 December 2010)
2) Buy one position at $1401.50 or on the London PM fix on December 29, 2010, whichever comes first. Stop-out point: sell at an intraday stop-out point if Comex spot gold trades at $1387.00. If stopped out, then re-buy this position if the Comex spot price the same day closes above $1394.00. (updated 29 December 2010)
3) Buy one position on the first Comex spot gold close above $1,410.00. I’ll set a stop-out price after this position is filled. (updated 29 December 2010)
4) Buy one position on the first Comex spot gold close above $1,422.00. I’ll set a stop-out price after this position is filled. (updated 29 December 2010)
Silver
1) Long two positions from $30.297 bought on the Comex silver spot close on December 28, 2010. Stop-out point: sell one position at an intraday stop-out point if Comex spot silver trades at $30.12. If stopped out, then re-buy if the Comex spot price the same day closes above $30.22. Sell the other position at an intraday stop-out point if Comex spot silver trades at $29.975. (updated 29 December 2010)
2) Buy one position on the first Comex silver spot close above $30.42 or at $30.18, whichever comes first. Stop-out point: sell at an intraday stop-out point if Comex spot silver trades 15¢ below your purchase price. (updated 29 December 2010)
3) Buy one position on the first Comex silver spot close above $30.64. I’ll set a stop-out price after this position is filled. (updated 29 December 2010) View all Trading Comments >>
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