As crowded trades go this flight to safety into the long end of the curve and the 30 Year Bond, nicknamed Big Daddy by the bond traders, is about as jammed up as it gets. It will be interesting to see what happens with the equity markets over the next two to three months given this measure of fear and uncertainty.
30 Year Treasury Weekly Chart
26 August 2010
US Bond: Our Hearts Belong to Big Daddy
Gold and Silver Charts
New futures were issued to holders of call options that were in the money today.
Let's see if the wiseguys try to run the stops tomorrow.
The second estimate of US Q2 GDP will be released tomorrow, with the consensus at 1.4% down from the original 2.4%. Keep an eye on the GDP deflator which is expected to remain steady at 1.8%. The deflator is the broadest measure of price inflation since encompassing all goods and services rather than a basket.
Gold Daily
Gold Weekly
Silver Daily
Silver Weekly
25 August 2010
Gold and Silver Daily Charts: What Time's the Next Expiration Ambush?
Those who were looking to pick up gold and silver on the cheap at the Comex option expiry ambush were left standing on the platform as the precious metals train left the station yesterday.
So what next? Expiration is tomorrow and the in-the-money calls will be rewarded with new futures positions. I have seen plenty of instances where the wiseguys ran the stops on those metal futures on the day after expiration. The US also has a GDP number coming out that day. So I would not consider the metals group 'safe' yet.
I do think that we are gearing up for quite a run in September, but we'll be keeping one eye on the equity market and the other on the Fed.
Gold
Silver
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