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As a reminder this is an option expiration week in US equity markets.
Volumes remain thin.
A friend Lee Adler thinks that the sale of the NYSE to the Deutsche Bourse could mark a top in equities. And he might be right. He cites some precedents for this sort of deal capping a big run in stocks.
As I mentioned yesterday I believe that US equities are now in bubble territory and vulnerable to a 5 to 10 percent pullback. However, with Uncle Thug plying its favorite Banks with paper, I would not wish to get out in front of this. Still, it would be typical to see something start around an option expiration.
As I have said, I expect there to be some 'action' around the option expiration this Friday.
Silver Open Interest just ballooned from 142,520 yesterday to 147,465 today.
The all important March 2011 silver contract, which should be rolling over to future months,
actually GAINED from 61,237 to 61,720 contracts today.
Asians Buying SLV to Take Possession of Silver Bullion
As an aside, there may be a hedge fund 'raid' on the Yen or Gold coming. Or perhaps word of official action has leaked. I am not sure what a 'watershed event' implies here.
"In an important development, The Gartman Letter – which not only has an excellent nose for major currency trends but which is also very well informed – declared a “Watershed” event for the yen, and increased its yen short positions, including adding another yen/gold “unit”. "
