And So It Was
It's deja vu, all over again. You probably don't need a reminder that I don't believe in coincidences, at least not when it comes to gold and silver.
There are simply too many pieces of the puzzle coming together here. First, a couple of hours ago, we got yesterday's open interest numbers and whaddayaknow...they're up. Yesterday, while gold price was volatile and declining, total OI rose nearly 6,000 contracts. In silver, which was down nearly 1.5% at 39c, total OI rose by 1000. Clearly, spec shorts are filing back in, hoping to force things even lower.
Earlier today, Andy informed me of obvious spoofing and plunging as someone or something was attempting to drive price back under the 10-day MA and trip the algos back into "sell" mode. It was also a "Non-happy Tuesday" where I expected Cartel selling in an attempt to cover their tracks from last week's short squeeze.
At any rate, it's obvious now what is going on and it's nearly identical to the action of last Tuesday. Here. see for yourself. This is today's 3-minute chart. Notice the decline into the close and then the almost immediate increase in selling as soon as the Comex is closed and the numbers set for this week's CoT.
Unfortunately, I don't have a 3-minute chart from last Tuesday. What I do have, however, is a 15-minute chart from last Wednesday morning. Note the exact same, post-Comex selling from last Tuesday.
And since this afternoon's selling has, in fact, broken the 10-day MA, it's completely reasonable to expect some of the same type of selling tonight and early tomorrow that we saw last Wednesday. The shorts are once again being sucked in and, when the area between 1525 and 1550 holds again as a bottom, they will once again find themselves squeezed by The Cartel. As they say...wash, rinse, repeat. In this case, as long as the HFT WOPR algos are dumb enough to keep playing, The Cartel is going to keep fleecing them. I, for one, am very much looking forward to waking tomorrow to see how price has responded overnight.
Just two other items for your overnight. First, this item from UBS via ZH. I like the article ( http://www.zerohedge.com/news/does-gold-support-channel-mean-drop-over) because I like this chart:
And now have a listen to this. It comes to us from the SGT report via the Silver Doctors. I don't know who Michael "Woody" O'Brien is but he certainly seems credible if you google him. At any rate, give this a listen. It's about 12 minutes.
Lastly, because I'm personally sick of all the pettiness and bickering, I'm going to disable comments on this thread and leave everyone on the previous thread to fight and complain about censorship and other such nonsense. For the record, this is my site. Ultimately, I am responsible for the quality and content of the blog and forum posts as well as the comments. You do not have the right to publish anything you please (nudie pics, racist/derogatory comments, inflammatory/threatening remarks) because I am liable for your actions. I decide what is necessary and helpful to the growth and maintenance of the site, not you. Your First Amendment rights are NOT threatened by this because there are about 100,000,000 other websites where you can spout any drivel you please. If this annoys you, fine. By all means, go away and don't come back. Feel free to tell all your pals at other sites what a "dictator" that mean ole Turd is. I couldn't give a shit. What I DO care about is making this place inclusive and user-friendly so that as many folks as possible will hear and understand the message. If this means disabling comments permanently and moving all "conversations" to the forums, I'll do it. Of that, you can be certain. Now, I hope and pray that it doesn't come to that. The greatest value of this site has always been found in the information generously provided by the "Turdites" but the current state of affairs is pushing more people away than it is drawing in and I won't have it. The overall message is too important.
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