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J. Johnson’s Latest – The Resolute Longs in Silver Still Refuse To Leave
August 23, 2019

 Great and Wonderful Friday Morning Folks,   

      Gold still has some pressures to deal with in the early morning with the trade at $1,505.80, down $2.70 inside a real tight trading range between $1,508.80 and $1,503.00. Silver is trading in the green with December’s price at $17.20 up 2.2 cents and being the high so far with the low at $17.105. The volatility is the exact opposite in the US Dollar with its value pegged at 98.32, up 25.6 points and close to the high at 98.35 with the low at 98.085. All of this happened before 5 am pst, the Comex open, the London close, and (the soon to be fired?) Jay Powell’s speech in Jackson Hole.     

      We show nothing but gains today in the emerging markets watch with the Venezuelan Bolivar adding 23.97 to the value of Gold with the current price at 15,039.18 Bolivar with Silver trading at 171.785 Bolivar, putting back 1.298 into yesterday’s price. Argentina’s Peso added 1,225.42 to Gold’s value with its price now at 83,673.90 Peso’s with Silver at 955.837 Peso’s showing 19.697 being added as well. Over in Europe, the Turkish Lira now has Gold valued at 8,679.27 it too showing a gain of 13.67 in Lira value with Silver adding 0.7687 to its price at 99.1382 Lira.     

      We are getting closer and closer to the Sept Delivery cycle with its count still highly elevated at 72,183, but we still have to deal with August’s final days with its count still at 1 lone buyer with his demand for 5,000 troy ounces and with no Volume or trading range to offer once again. Apparently the Resolute Longs are refusing to leave the field of play as the Open Interest count increased by 765 Overnighters giving us a total of 235,591 Obligations still in play. WTH are we looking at during this rollover period? It appears the Resolutes are still buying the dip and the shorts are still trying their “don’t flinch” approach. Is this the edge of your seat, get the popcorn out, and let’s see what happens part of the show? It sure could be (this batch of popcorn needs more butter)!   

      September Silver’s options come off the board this coming Tuesday, with the obvious move being to sell off the profitable positions before the rollover, and that may still occur. But that hasn’t happened yet with last night’s count of “Deep In The Money Options” still totaling 15,124 “Rights to Buy” at and below the $17 strike. The reduction in count from last Friday to now is only 126 in total. To add to this anomaly the Open Interest count in the $17 Call was 1,426 “Rights to Buy” held 2 days ago, now we have a count of 1,503 proving someone is adding positions not subtracting.