PINL:VLTAF - Post by User
Comment by
VentureTrader1on Nov 28, 2012 12:26pm
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Post# 20655291
RE: RE: POG?
RE: RE: POG? Or else it's because the commercial short:long ratio is 2:1, which means there are is a relatively large speculative long position. Yesterday being options expiry on the Comex, and with gold having stayed relatively strong into options expiry, a bunch of long, in-the-money options would have converted to futures positions. So having a big drop today puts huge margin pressure on those new positions, forcing liquidation of the long-side contracts. Usually the big move is done before options expiry, to either get the long-side option holders to liquidate or to have their options expire worthless. However, this move works just as well - whatever it takes to game the paper market. This is what you can do if you're a bullion bank backed by the FED with infintely deep pockets. Enjoy...