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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: SliderOnTheBlack who wrote (14205)	1/5/2009 4:02:37 PM
From: Proud Deplorable	Read Replies (1) \| Respond to of 50356

"good point, however that big number in gold is equal to about 10,300 contracts. Volume in Feb 09 Gold today is 87,896" from a comment on the article..same link

To: SliderOnTheBlack who wrote (14205)	1/5/2009 4:58:43 PM
From: Proud Deplorable	3 Recommendations Respond to of 50356

Hi Slider.....I emailed your post to Jim Sinclair who immediately sent the following out to his email list --------- ""Nothing will unnerve the paper gold shorts more quickly and do more to undercut their confidence than to strip them of the real metal and force them to come up with more hard gold bullion to make good on deliveries. "Stand and Deliver or Go Home" should be the rallying cry of the gold longs to the paper gold shorts." --Trader Dan Norcini Dear Comrades In Golden Arms, Here is the other "WHY" gold was sold down today. The truth will set you free of the manipulators. $25,000,000,000 of index commodity funds follow the index readjustments made herein. Gold is REDUCED from 10.8 to 7.9 percent of the index which therein causes related selling by INDEX FUNDS. Buying or selling by index funds is a yearly, onetime event. These adjustments are needless artificial buying and/or selling of specific commodities that skew market prices and produce opportunities both to buy and sell short. You think reweighting is a product of a hands off process in today's rotten to the core world? You probably also believe in Santa Claus. Beware, commodity index rebalancing ahead Posted by Izabella Kaminska on Jan 05 15:34. The major commodity indices rebalance their respective asset weightings once a year (or occasionally more) - and with that comes a mass dose of buying and selling. The 2009 rebalancing is expected to start sometime this week. Luckily, JP Morgan has produced its best guess of how the 2009 reweightings of the DJ AIGCI and the S&P GSCI indices will impact the market. The weightings for both indices are released ahead of time, but begin to kick in the first few working days of the new year. In the case of the DJ-AIGCI - which JP Morgan estimates has $25bn in funds tracking it - the new weightings come into force during the roll period that begins January 9th. The S&P GSCI index weightings kick-in after its January roll which commences January 8th. JP Morgan estimates about $50 bn of investment into that index. As the DJ weighting multipliers account for changes in US dollar-denominated values there is generally more potential for large changes there than in the GSCI, whose weightings are set in terms of ounces/tonnes (on the basis of liquidity and are weighted by their respective world production quantities). Accordingly, JP Morgan see the most significant change coming in the DJ-AIGCI rebalance. Here the market weight of crude oil is expected to increase from 9.6 per cent to 13.8 per cent, gold from 10.8 per cent to 7.9 per cent, copper (COMEX) from 4.5 per cent to 7.3 per cent, live cattle from 6.4 per cent to 4.3 per cent and sugar from 4.7 per cent to 3.0 per cent. Meanwhile, S&P GSCI crude oil weight will go from 32 per cent to 33.8 per cent. Their analysis: In financial terms, we expect the rebalancing to have the greatest impact in gold, COMEX copper, crude oil, gold, and live cattle. We estimate that the rebalancing of the two indices is expected to result in $877 million of selling in gold, $699 million of buying in COMEX copper, $528 million of selling in live cattle, and $523 million of buying in crude oil. More... " ftalphaville.ft.com