According to Ed Steer, it looks like JPMorgan is very heavily short G&S after last weeks failed attempt to hold $1600 and $40. They are planning a major attack as soon as the debt ceiling agreement is announced. This defies logic as a raise in the debt ceiling will allow QE3 to go ahead which will lower the US$ and raise the price of G&S. However logic doen't mean anything to JPM.

I guess this will happen next week ahead of the jobs report on Friday. Maybe they can get both attacks over at once if the agreement is delayed to Aug 4th. I don't know how this will affect pm shares but they always seem to get hammered on a plan B attack. Although after the past weeks drubbing, they really can't go too much lower. The attacks will be short lived and should be over by Friday. On the positive side if no agreement is reached then G&S and pm shares could go up big time. I don't know what will happen if it is a unilateral increase by Obama or if it is a 2 stage approach favoured by the GOP.