The Unrelenting LegHounds

I was ready to call it a night when I saw it. Felt I should start a new thread because of it.

I'm speaking, of course, of the $23, 2-minute shockwave that hit the Globex at 10:21 pm EDT. This, of course, is normal action for late on a Thursday night. Nothing strange, at all. <heavy sarc>

The main thing you need to know is this: We have ourselves another coordinated takedown of the metals, just like Leap Day. The action on the Globex both this afternoon and tonight confirms that the "LegHounds" are far from finished. They've constructed this selloff in order to help themselves continue to cover as many additional shorts as they can. When the gold broke out on Friday and silver yesterday, they weren't ready. Though the last CoT showed a 75% reduction in the EE silver net short ratio, they were still imbalanced by over 14,000 contracts. Today's action and the action to come is helping to rectify this, of that you can be certain.

Again, all I ask is that you remain patient. Please continue to use this and any additional bouts of weakness to gradually add to your stack and prepare for what is coming.

Gold is already $15 off the lows of last hour so let's see if price is brought back up into the two London physical fixes. Once we get past 10:00 am EDT, however, make sure you're wearing long pants. The LegHounds will likely return with a vengeance.

TF

187 Comments

NW VIEW's picture

Mr..T.F.

Time to sleep

FleetFeet's picture

Glad you're up and working!

Now, let's all get a good night's sleep.  

Turd, you're doing a great service.  But don't let it run or ruin your life.  Gold and silver are going to do what they do, and the crooks are going to do what they do, and the rest of us are best off laughing and taking care of ourselves as best we can.  

Nobody, but nobody, can actually know what tomorrow brings.  

survivalwstyle's picture

thurd

mr f. thank you again for this. kEEp the faith. peace.

ThoughtCriminal's picture

Genius

Stoxxman's picture

Gold down $ 21

http://pennystockjournal.blogspot.ca/p/gold.html

What a ship in troubled waters.

Turd Ferguson's picture

I should add

MODERATOR

I just got an email from an astute Turdite who was trading when it happened. VERY INTERESTING!

It seems all bids were pulled at the exact moment 1750 contracts were dumped. Blatant manipulation.

I'll see if I can get more by the morning.

Be Prepared's picture

Walk Your Own Path, Turd, my friend...

Walk Your Own Path.... Just like You've always Done

Turd, it has been hard for you to take on the leadership you have so selflessly given in establishing this site and putting your thoughts in posts for all to see...... and we all love you for it!  You have fostered a unique community and the richness of opinions that exist on this site is like none other anywhere on the web.

Know what you Know and Do what you Do.  Yes, the charts you provide may not always nail tomorrow's direction, but they are, at least for me, designed to make me think and to peer into the market.  I don't think you should abandon them all together, but follow your heart and trust the direction you think will help the community to grow.  I do think there are more people to reach and I know that you make a difference to new "turdites" every day....  you may not know it or hear it, but the difference you are making is still true and bright, my friend.  Thanks for all you do...

bernard's picture

win a 10 oz silver bar from liberty coin & precious metals

saw this on www.reddit.com/r/silverbugs , thought you guys might be interested:

check out http://libertycpm.com/contests/june-2012-10-oz-silver-bar-giveaway/

R man J's picture

ounces in possession

The prices have changed, but the physical is still measured in ounces. There is only so many. They can't be created. 

Battle Beagle's picture

The Next Major Top In Silver

Silver not going anywhere for a while? Better grab a snickers......

Time Needed For Silver To Break Old Highs

ReachWest's picture

Stack-On

Keep the stacking going - this blatant take-down indicates they are becoming desperate. IMO.

June is proving to be a most interesting month.

balz's picture

I disagreeTurd

"They've constructed this selloff in order to help themselves continue to cover as many additional shorts as they can."

I believe they covered as many shorts they could BECAUSE they needed to construct this selloff.

The plan is a gigantic QE later this summer. They need metals as depressed as they can.

They have no plan to get out of their shorts. They are not there to make profit on the metals. They make profit on paper and to do this they need to suppress metal price for as long as they can.

Turdle GG's picture

balz

well they haven't done a very good job suppressing the price of gold over the last 10 years...

balz's picture

Turdle GG

Turdle GG : Of course, they are losing. But the name of the game for them is to keep trying as much as they can and make as much paper money as they can until the system implodes. The name of the game is : BAILOUT.

But yes, they are losing.

Still, an old dog can bite.

ivars's picture

OOPS that was unexpected

OOPS that was unexpected (well not quite, but somehow there was vain hope..) and close!  At 22:17-22:38. Silver - about 15000 contracts dumped ( or how the volume is shown on Netdania)-anyway, a lot. Guess there is more to come ..soon. Staircase. The bottom around previous low of 28,00 held, though!

Sirtitan45's picture

Any day now

Ahhhh.... the delaying of the inevitable.

sixdollarsilver's picture

Late afternoon here.

Windy and cool, tide's out.  

Keep up the good work Turd.

Louie's picture

Excited to see CHARTS!

Turd, I really appreciate what you do.  I love your charts.  I hope you took Mrs. Turd out to dinner and that little break has sharpened your focus.  

Time for an extended vacation?  Why not tap some of the great top posters and take a week sabbatical?  Leave your computer and cell phone at home, and get back in touch with what is really important.  Family, health, the spiritual side of life, relationships.  Last year I took the Lil'Louies on vacation.  Place we stayed had an ice cream man that came by every day at 3:00.  Bought them all ice cream every day for a week.  A year later, ever time we get ice cream they still talk about it.

We don't stack so that we will be the next George Soros, we stack because of the wee ones.  

BTW- Feed the Turd!  If a couple dozen of us would ring the coffer, it might make it easier for Mr. T to take that vacation! 

lostinspace's picture

Remember the Liberty! 45

Remember the Liberty!

45 years ago tomorrow,  the USS Liberty was attacked by Israeli fighters and torpedo boats killing 34 sailors, and wounding 171.

S Roche's picture

@ Ivars

Netdania volume is ounces from the 5 largest Interbank market participants.

Louie's picture

Repeat after me, "Paper price does not reflect.....

the actual value of gold." 

I have no idea why people are willing to sell physical at the paper price.  We all know that the massive number of contracts that were just dumped are not physical gold.  Nobody just cashed out their stash.  I would bet that there was an informed buyer on the other end who agreed to buy those contracts as soon as they were offered up.  Only reason this was done was to drive down the price of physical. 

However, as of today, we can still buy physical at close to the paper price.  Someday soon all the physical will be in strong hands (I am doing my best to buy it ALL!!!!) Excuse me while I go see my dealer.     

Eric Original's picture

Let's just keep our eye on the ball

7350429996_ae27c71c19.jpg

I eyeball a few trendlines on that chart, and it looks like new highs by next summer.   That is +25% from here.

Steinbacken's picture

Out of Touch,

Out of Touch, or Prescient?

Activistpost article by Jeff Clark

"Is the Table Set for a Mania in Precious Metals?"

http://www.activistpost.com/2012/06/is-table-set-for-mania-in-precious.html

I have to say that, with my retail inventory monitoring, there may be a valid point in here.  The biggest, quickest drop in inventory was when the price was highest in the period I've monitored quantitatively.  That means that the buying hasn't even started, even though retail stocks are just beginning to show early signs of sustained drawdown.

Further, if longs have been scared out of the market today, just think about how desperate they would be if prices jumped 20%+.  What if there were paper or electronic issues and physical became a real perceived solution?  (That's what I've been waiting for, my bias.)

Enjoy your evening!

(I found the article courtesy of whatreallyhappened.com.)

Hard Rain's picture

Question

Why do Gold Maple leafs have a lower premium than Gold Eagles. $1618 vs $1843 on APMEX right now. Why the higher premium for AGE's , or Pandas, Brittanias vs Maple leafs?

Just curious.

Rain

SaratogaPrepper's picture

Works for me!

This drop works well for me! Bonus checks to arrive tomorrow due to our keeping within the PSC's limits for customer outages and times last year. I have plans to take my supervisor to the LCS on Saturday to help him with his first purchase of PM's. He being in management receives a much larger check than I do. Haven't figured that out yet myself. Didn't see him working his butt off (literally in my case) for 126 hours in one week when Irene blew through last fall. But anyways, he is a decent guy with little ones at home and I've pointed him to this site and ZH to name a few to educate him. Today he asked me what I would do with my check and told him PM's, Au + Ag + Pb + Cu/Zn. He didn't get the lead & brass reference, but said he now understands what I've been telling him for the last year or so about the world economy swirling the bowl. I figure an AGE or gold Maple plus a tube of ASE's or silver Maples will be a good start. He'll take those home and fondle them (like we all do, admit it) and then we'll have an other convert. The biggest trick will be getting him to spring for lunch.

Mudsharkbytes's picture

Given the title of this thread…

…somebody was bound to post this clip, so I figured it might as well be me.

ivars's picture

GSR-small upswing despite metals going down

.GSR-small upswing despite metals going down, but still much lower than maximum. Stable lower GSR is also again good for silver. According to my pet theory, it should still mean that we have passed the clear bottoms in silver (26-27) . USDx working a bit against.

Image

ivars's picture

@ SRoche

Thanks. So it just indicates a spike. But anyway. Wonder how much of the volume was made by 5 biggest banks in this raid? 80/20 law? 5 banks sell/short  80% of volume?

Turdle GG's picture

ivars

Netdania shows spot FX volume for XAU.  Spot market pricing is determined by futures market prices (as I'm sure you know).  So, the volume shown on netdania does not necessarily relate to volume in futures market.  

The raid would probably have been in the futures market (Globex).  The spot market pricing just followed, but spot market volume could be very different to the futures market volume.

But, I'm not an expert like Andrew Maguire, so am not certain.

Hard Rain's picture

Took Advantage of the sale

Pleased to say I have my first Britiannias (g and S).

Qty Item Price Ext. Price
100 2012 1 oz Silver Britannia $33.83 $3,383.00
1 2012 1 oz Gold Buffalo $1,664.69 $1,664.69
2 2012 1 oz Gold Britannia - 25th Anniversary $1,679.69 $3,359.38
 
US Dollar us.png Order Sub-Total: $8,407.07
S & H: $10.00
Total: $8,417.07

Rain

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