Mid-Week Gold & Silver Charts

Wednesday, May 2, 2012 at 5:48 pm

As we barrel toward another fun-filled BLSBS Friday, I thought it was time to contemplate where we've been, where we are and where we're going.

Perhaps you've noticed a clear pattern this week of price suppression.

The obvious manipulative event of Monday where JPM dumped 7500 contracts onto the Comex. This blatant and overt attempt to drive price lower was later written off as a trading error. "Oops. I fat-fingered and entered 7500 instead of 750. My bad." This trimmed $15 from gold just as it was threatening a move to 1680 and, more importantly, made a Comex close over $1672 extremely unlikely. Why was $1672 so important? It would have turned the month of April green on the chart and helped further set the stage for a rally in May.
The less obvious but equally painful hammering of yesterday. After gold had rallied back from Monday's BS and was threatening, once again, to make a run at 1680, gold was struck for another $15 after the first release of a semi-positive economic number in weeks. Gold then struggled all day while stocks and crude oil surged.
Today, gold rallied after the ADP employment survey came in weaker than expected. ADP is often considered somewhat of a precursor for the BLSBS and gold surged back over $1660. What happened next? To the surprise of no one, gold promptly fell another $15.

Does anyone see a pattern here?

But, of course, it is what it is. If you're going to trade/stack gold and silver, you're likely used to this by now. The primary question is: Why? Why three, successive manipulation days on the Monday-Wednesday ahead of BLSBS day? To engineer a lower price ahead of the number? I'll guess we'll know soon enough.

Another question of importance is: How? How is The Cartel still so successful at pulling off these raids? It's simple, actually. They're the only ones left in the pit. Well, them and some robots. Volume is so light and trading is so thin that the primary action in paper metal right now is Cartel manipulation surrounded by HFT WOPRs trolling for stops to game. When there's no depth or "muscle" on the bid side of the trade, it makes The Cartel's job that much easier. I'm not saying that we're going to be stuck here forever, mind you. However, I am saying that patience is going to continue to be required from those trading paper, hoping for another big, sustained move to the upside.

That said, there is some reason for hope. Over the past week, the total open interest in gold appears to have bottomed...at least for now. It banged around for a few days under 400,000 but has since turned and is now comfortably back above 410,000. This interest and willingness to play in the casino is vital for liquidity and liquidity must return for paper gold to surge higher again. Let's watch to see if OI continues to expand in the coming days. IF the BLSBS is metal bullish on Friday, let's look for an accompanying surge in OI as confirmation of trend change.

Lastly and along those lines, this week's CoT promises to be very interesting. For the reporting week, gold rose in price by nearly $20 and total OI rose by nearly 16,000 contracts or over 4%. How that rise in OI is dispersed among market participants will go a long way toward helping determine whether liquidity is returning. In silver, a different picture emerges. For the week, silver was essentially unchanged in price yet total OI fell by 11,500 contracts or 10%! Who was buying and who was selling? How did the net ratios of the specs and the EE change within this 10% drop? Again, the answers will be very interesting.

Here are your charts. Ahead of the BLSBS, I expect tomorrow to be a choppy, rangebound day with most traders unwilling to make a commitment either way. We'll be left with the same nonsense as today where WOPRs bang around, trolling for stops. $1645-50 should continue to provide support in paper gold as there continues to be buying support in physical metal at those levels.

Silver tried to rally and break out above $31.40 after bouncing off of $30 late last week. No such luck. It seems to have pretty solid buying support between $30 and $30.50. Let's hope for a continuance of support at that level as we head toward Friday.

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Comments

Thanks Jesse, Al, B.O. etc.

Submitted by ClinkinKY on May 3, 2012 - 8:31am.

Timmah

Submitted by ClinkinKY on May 3, 2012 - 8:33am.

And finally...

Submitted by ClinkinKY on May 3, 2012 - 8:33am.

smack down on the claims

Submitted by Groaner on May 3, 2012 - 8:35am.

Like you can believe the fiction the gov puts out... what a joke!!!!!!

Manipulation

Submitted by murphy on May 3, 2012 - 8:36am.

Not news here but anyway. Although the metals, and even more so the miners take first place in the manipulation game, it is not going unnoticed in others as well.

Don't Day trade Stocks like This

There have been a number of these rumors of late on RIMM, but it's not unique to RIMM. The question that comes about is how many of these "rumors" are real, honest rumors of real things that someone was considering and how many were conveniently-timed lies that someone planted after taking a position and setting a nice opposing order that they intend to drive price into?

Who knows. What I do know is that I've seen damn few insider trading prosecutions although I see lots of examples of this sort of outrageous move in various stocks. It's not just RIMM -- how about Monster Beverage the other day?

That was on a rumor that Coke was going to buy them -- later in the day it was disclaimed and bang -- the price collapsed.

Honest or intentionally dishonest?

Who knows. I sure don't. But what I do know is that not only can you not invest in a market where your money is stolen by these sorts of shenanigans it makes it very difficult to trade in such a market too.

If nothing nefarious is going on, then that's fine. But over the last several years I've outlined too many examples to count where option buying or selling has taken place in front of such a move, lending credence to the idea that these aren't simply "oddities of the market" but rather are intentionally-crafted skimming operations that all too often wind up victimizing ordinary people.

And people still wonder why volume sucks and the retail trader orinvestor has taken his ball and bat and gone home? That's looking like a rather intelligent thing to do, isn't it?

http://market-ticker.org/akcs-www?singlepost=2929598

Look at the volume on these smack downs!

Submitted by Groaner on May 3, 2012 - 8:49am.

Criminals! 5000 contracts sold in 2 minutes

This is getting to be even more ridiculous than usual

Submitted by Turd Ferguson on May 3, 2012 - 8:50am.

MODERATOR

It matters not what the index is or how much it "beats", gold is immediately hammered.

Trading on the Comex is now so thin that a single WOPR or The Cartel can drop a single order and plunge price. If you thought the Comex was a crooked casino before, what must you think now.

Thanks

Submitted by Vernon Wormer on May 3, 2012 - 8:51am.

Been a while Turd. JUst wanted to say thanks for all you do. Keep it up.

How can people worship any of these governments???

Submitted by Groaner on May 3, 2012 - 8:54am.

They will realized they have been fooled, when its too late..

Its all a big Ponzi scheme..

Interesting that silver is hanging tough, better than gold

TF

Submitted by murphy on May 3, 2012 - 8:58am.

You can add these to the other side of the ledger from the other days post. From JS Kim

http://undergroundinvestor.com

http://www.theburningplatform.com/?p=33895

In the underground world of banking, doing wrong means doing right, up is down, and left is right. I happened to stumble upon a secret version of the Bankster’s Dictionary the other day when I was visiting a bank. I’ve posted some of the terms below that were contained in the Bankster’s Dictionary to help you understand bankster language.

US Federal Reserve = European controlled private bank.
Central Bank = Counterfeiting Ring Leader
Criminal Underworld Currency Counterfeiters = Competitors that must be arrested and jailed.
Savings Account = Devaluation Account, Cash Advance for Gambling Division
Gambling = Banking Primary Business Line
Fraud = Banking Secondary Business Line
Las Vegas, Macau, Atlantic City = Model for running business operations.
Inflation = Currency Devaluation through anti-free market manipulation of interest rates.
Fractional Reserve System = Fractional Expansion Citizen Bankruptcy System, BSE (Biggest Scam Ever)
Futures Markets = Manipulation Casino, SkyNet Three-Card Monte Scam
Pablo Escobar, Joaquín ‘El Chapo’ Guzmán, The Ochoa Hermanos, Yakuza = Cash Cows
El Subcomandante Marcos aka Delegado Zero = Anti-poverty activist that must be wacked and shut up
Independent Media = Terrorist
Mass Media = Allies
Allen Stanford, Bernie Madoff = Occasional Patsies and Necessary Fall Guys to appease the public’s ire at us.
Stock Markets = Manipulation Casino, SkyNet Three-Card Monte Scam
Commercial Investment Firm Rating of “Buy” and Hold” = Contrarian Indicator to SELL!
Commercial Investment Firm Rating of “Sell” = Contrarian Indicator to “BUY!”
Barbarous Relic = USD, Euro, Yen
Beta = Empty Statistic meant to impress naïve investors
Loan = Usury
USD, Euro, Yen, etc. = Fantasy Digital Idea made real by banksters to control humanity
Women’s Liberation Movement = Expansion of Tax Base from only men to men AND women
Income Taxes = Wealth Transfer from citizens to owners of central banks.
Gold = Bankster Kryptonite
Silver = Bankster Kryptonite
Truth = Banker Kyrptonite
Lies & Deception = Bankster Standard M.O.
Free Markets = Fairytale story like Santa Claus, Easter Bunny and Tooth Fairy to be taught in business schools worldwide.
Drug Lords and Underground Crime Syndicates = Provider of global banking liquidity and huge year-end bonuses
Parasite = Favorite insect
Capitalism = Dead system that was killed by Central Banking but false scapegoat we can blame when we cause economic crashes and despair
Miscellaneous Charges = Small Monthly Charges to siphon off money from bank accounts that customers will never notice or complain about
Computer = Vehicle to rig all stock markets and commodity markets with HFT programs that execute trades not possible if executed by humans and if executed in a clear and transparent market.
Boom = Unsustainable price distortions caused by interest-rate manipulation and market rigging.
Bust = Opportunity to make money twice as quickly as in a boom!
Market Crash = Engineered event to ensure the peasants will never accumulate enough wealth to rebel against us.
Rising Markets on Mondays or Tuesdays into OpEx Fridays: Ruse to sucker more people to go long in order to fleece them by the time Friday arrives.
Declining Markets on Mondays or Tuesdays into OpEx Fridays: Ruse to sucker more people to go short in order to fleece them by the time Friday arrives.
Presidents and PMs = Best puppet and marionette allies to be rewarded handsomely after they leave office (see Tony Blair and the current POTUS)
Superior Judges, SCOTUS = Made Men
War = Double Bonus! Opportunity to devalue money at faster rate than during peace time and opportunity to accumulate more wealth from interest charged on war appropriations.
Universities, Colleges and MBA programs = Re-education camps to indoctrinate students into fairytales of non-existent free markets, non-existent capitalism, and lies about how stock markets, real estate markets and economic cycles really work.
Economic Journals and University Tenure = Carrot dangled in front of economic professors to ensure that they repeat to the world the “official” party line.
Key Economic Indicators = False manipulated statistics designed to dumb down citizens into believing economy is recovering even as we increase their economic suffering
Ben Bernarnke = Shakespearean clown.
Conspiracy = Best Word to Discredit Truth about the global monetary system when the truth somehow escapes our censorship algorithms and makes it to the mainstream media we control.
Machiavelli = Role Model
Ivy League Schools = Indoctrination Camps for media representatives and professors we will send to brainwash other global regions into believing our propaganda
CNBC = The Cartoon Network.
Goldman Sachs = Rookie Farm Camp for global criminal banking syndicate.
World Bank & IMF = Banks used by Western countries to impose crushing debt on developing nations to stunt their growth.
Bailout = Transfer of Wealth from citizens to us.
TBTF = Lie used to ensure we can perpetuate fraud.
Quantitative Easing = Currency Devaluation.
Fiat Currency = Worst Possible Idea
Propaganda = Daily Financial News Feed
Compartamentalization = Process to keep good people working as cogs in the machine within the banking industry ignorant of the fact that they are inflicting massive harm upon society.

If others of you have had the good fortune to stumble across this secret Bankster Dictionary like me, please feel free to post more Bankster glossary terms below.

More from Hugo on KWN

Submitted by Groaner on May 3, 2012 - 8:59am.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/5/3_Bil...

He hits the nail!

the USD just took a huge drop!

Submitted by Groaner on May 3, 2012 - 9:01am.

metals are barely moving up.. this is nuts

Business meeting

Submitted by Igiveup2 on May 3, 2012 - 9:01am.

I am going to use this video to visually explain to those entering blogs for the first time what to expect. Awesome.

but its a spring

Submitted by boatman on May 3, 2012 - 9:02am.

the next shoe to fall they will get hit in the nose with it like last july-august.....now it looks like we do not make the election without a debt ceiling increase.....just one reason of many.........hey-ooooo.

today is just a temporary reason for stackers to celebrate.

PMs on sale.

he who celebrates last, celebrates best.

http://www.financialsense.com/financial-sense-newshour/big-picture/2012/...

Notice that silver is steady here

Submitted by Turd Ferguson on May 3, 2012 - 9:02am.

MODERATOR

Wondering why? Perhaps our pal, Andy, can help.

He sent me an email overnight that mentioned how the Shanghai closing premium vs futures was $1.26! The futures were in backwardation at that point and have been fluctuating into and out of backwardation since. This means: Not much room for silver to fall here. The EE would love to raid silver on the back of the gold raid but they can't. Physical demand is too strong. Andy calls this a "major red flag for the silver shorts".

Patience. Soon the shorts will be forced to capitulate and the resulting squeeze will ease the pressure on us.

gold smackdown

Submitted by printmemoney on May 3, 2012 - 9:07am.

If anyone gets the details on the # of contracts dumped, please share. I find that very informative. Furthermore, I think it is a sign of desperation and medium term bullish.

Thanks.

ps. Why won't anyone print me some money?

today's pure shiny has arrived

Submitted by achmachat on May 3, 2012 - 9:08am.

I thought I'd share the three prettiest ones:

Maybe (NO manipulation Bob Moriarty and Nadler ) can

Submitted by Groaner on May 3, 2012 - 9:11am.

explain the action recently to us.. JERKS

Pan Am chicks, "come fly with me"

Submitted by Patrancus on May 3, 2012 - 9:13am.

Pan Am chicks "come fly with me"

http://search.yahoo.com/search?ei=utf-8&fr=aaplw&p=Catch+me+if+you+can,+...

So its costs the gov a few billion here a few billion there

Submitted by Groaner on May 3, 2012 - 9:14am.

to keep the metals suppressed, so whats that, they spend more than that on hookers. thanks for the printing press, Yahoo!

The worse things get, the more they slam gold and silver..

Submitted by Groaner on May 3, 2012 - 9:17am.

If things were really getting better they would leave the metals alone.. So things must be really bad, eay?

USD had dropped 30 ticks from the high and

Submitted by Groaner on May 3, 2012 - 9:19am.

the metals still cant budge..

Silver, if it breaks $30 where do we go?

Submitted by Groaner on May 3, 2012 - 9:26am.

$27-28? if so load up the truck..

Outside reversal on USD index

Submitted by Maximillion on May 3, 2012 - 9:27am.

At this rate we'll have an outside reversal day on the $, now if we could just get the same with PM's !!!

Just popped into say...

Submitted by cpnscarlet on May 3, 2012 - 9:28am.

Give it up Turd. The moves in Au and Ag this AM are so ridiculous, and yet so banal. 1645-1650 was a bad joke today. TA is dead, and only Ivars has been close to lucky. Last month, Davies was wrong as well as the usual Turk miss. This month I expect Rickards to be wrong on his QE3/Yuan deval call. Even Santa's becoming a hard read to get through, but I'll still look for what he has to say.

For all the good it has done us in the last six months, we might as well be posting cookie recipes here. Sorry, but that's how I see it. The EE will do what it wants when it wants and will be able to do so because the people who should be policing the markets are complacent. Very few solutions for this situation, and most of us here don't have any of them.

Just stack.

The idiots have to know they are burying themselves..

Submitted by Groaner on May 3, 2012 - 9:28am.

The more they drop the price, the more physical is bought.. Countries are lining up with buy orders to clean out the US vaults.. idiots..

Everything is ok now ,, now that I know AAPL is up, as usual

XTY

Submitted by York Rite on May 3, 2012 - 9:37am.

I provided the link with $1,650 supposedly being support written and published by Sinclair on Monday of this week.

Here it is:

- Jim Sinclair’s Commentary

Credit Suisse asks a question to which the answers [sic] is yes!

CS Gold Watch: Is $1,650 now support? -

Translated: $10 is the maximum downside in gold. Buy now, boys.

He keeps making terrible calls that are proved to be rubbish within hours rather than days or weeks. Add this latest one to April's $1,630 is the bottom and February's humongously dire Gold Market Of The 70s Was A Dress Rehearsal article which included the line 'Another try by silver at $50 looks imminent' that was delivered, right on cue, just prior to this continuing horror show in everything precious metals related began.

You might think it's a series of unfortunate coincidences that he chooses to make wrong predictions at the worse possible times over and over again. I don't.

Troll Capitulation List

Submitted by Abraxas on May 3, 2012 - 9:42am.

As I was called a Troll around here (admittedly only by one person) I thought it would be funny to act like one and compose a Troll capitulation list, as a response to Turd's earlier post. Now, the material below may not be suitable to irritable audience, blind followers of any sect, or Defenders of the Turd. Before I start, I'd like to emphasize that I like coming to this site and read Turd's and many guest comments. From time to time I get a good chuckle, and occasionally even learn a thing or two. I prefer PMs to fiat but don't believe TA can predict anything, as I think it's all BS.

PMs can only go one way: UP

Miners can only move in the same direction as the PMs, but double the rate

Turd is a real name of a hero who sacrifices his time to educate us (mostly Trolls) in order for us to see the light and to convert us to PMs

John Embry made dismal calls on WDO and LSG because he loves us

Sprott is this kind-hearted individual who is willing to dispense with his knowledge in order to help us, the working class, preserve our wealth

Every time the metals go up is a natural thing

Every time the metals correct (which is in contradiction with the first point) is a blatant manipulation by the Rotchilds, EE, Fed, and the pope

Markets are heavily manipulated, but Turd can accurately predict them using charting techniques and grade 5 algebra

The Santa's perma-bullishness has nothing to do with him owning Tanzanian Royalty Mines

Jim Willy truly has all these contacts that tell him what will the true world leaders decide. These contacts fly down to Costa Rica where he resides to tell him all this

Gold standard is around corner

If you buy enough Au, Ag, guns and ammunition you'll be just fine during and after the Armageddon

There is no risk whatsoever if you borrow all the money you can against your property and buy some junior miners from Embry's list

I haven't lost a dime purchasing junior gold and silver shares that were recommended by the above individuals. I actually made lots of $ which I used to buy even more juniors

When Jon Nadler makes his pathetically inaccurate calls on gold, he is an idiot, cretin and a clown. When John Embry, Ben Davies or John Hathaway make equally pathetic calls on the miners they are still geniuses and nobody dare even mention their misgivings

Bernanke, Draghi and Geitner read TF Metals Report and amend their policies accordingly to screw us up

I NEED MONEY!

Submitted by Lumpy on May 3, 2012 - 9:43am.

I need (Paper) Money to exchange for REAL Money (gold and silver) So when the paper Money isn't worth anything anymore................My REAL Money will be worth A TRILLION WORTHLESS DOLLARS and I'LL BE FUCKING RICH!!!!!!!!!!! Right?