DAN NORCINI'S COMMENTS ON DECEMBER 9, 2008

FROM JSMINESET.COM Hourly Action In Gold From Trader Dan Posted: Dec 09 2008 By: Dan Norcini Dear CIGAs, Not much time today gang – I apologize for the brevity – these markets are getting to the point where you can hardly look away from the screen for even a moment… madness is too kind of a word to describe what they have become of late. Gold was able to shrug off pressure from the weakness in the Euro-Yen cross and close higher for the pit session which is quite an achievement. It is holding support at levels shown on the chart near $765 or so. Resistance remains at $780 followed by $790. Open interest went up yesterday but that is a bit misleading because it was all concentrated in the June 2009 and December 2009 contracts. The gains in the HUI and the XAU are turning the chart patterns friendly especially give the inability of the broader stock market to maintain rallies. The HUI is trading above the 50 day moving average. If it can maintain its gains and this level going into the closing bell, it should spark some further short covering among technically oriented shorts. The 10 and 20 day moving averages are heading higher and the 40 day looks like it is also turning up. That would signify the trend is now higher for the shorter term. The 50 day would need to turn up to bring the intermediate trend to up. On the delivery front – Fortis was the largest seller issuing 30, 16 of which were taken mainly by the largest stopper HSBC. That brings the total to 12,449 for the month.