Quick Update

445
Thu, May 3, 2012 - 10:28am

Here comes a stream of consciousness. Probably not a good idea but here goes.

I think this is all a big setup. However, this time, it's an opposite setup to what we're used to.

The action this week seems to be a coordinated effort to suck in and trap as many spec shorts as possible ahead of tomorrow.

Every headline this week that could possibly be used to raid the gold market has been utilized.

Today is the latest example but note that the dollar was declining and silver was flat.

The decline after the claims number was released was on less than 2000 contracts. The Cartel pulled their bids and allowed the WOPRs to quickly drop price through some sell stops at 1640. This process has continued to this moment as gold has now made a low near 1635.

This final drop was worked in around the London PM fix and now gold will likely trade sideways to higher the rest of the day as WOPR positions are squared before the close.

The stage is now set for a massive short squeeze tomorrow. Look, I have no idea what the BLSBS will be. How could I know? Maybe we'll get 7.9%, 250,000 jobs and $100 down in gold. I have no idea. What I do know, however, is this: Today reeks of a final suck-in of shorts ahead of the number. Does The Cartel know what the number will be? Maybe. I can tell you this: The likelihood of them knowing ahead of time is infinitely higher than the likelihood of me knowing.

With so many weak handed longs stopped out this week, there are really none left. And now, all of the weak hands are on the short side. They look ripe to be squeezed.

A spike tomorrow, post the BLSBS, looks likely. Just as how The EE allowed the final silver spec longs to be drawn in on Feb 28 ahead of The Leap Day Beatdown, The Gold Cartel has allowed the final gold spec shorts to be drawn in today.

A spike tomorrow will cause extreme pressure on the gold shorts. A move back toward 1660 and beyond will cause them to cover. London is closed on Monday. This may cause additional shorts to cover. Would you want to be short over the weekend if NFP comes in at under 100,000?

Our pal Andy just sent me an email informing me that Shanghai silver traded with a premium to futures of $1.26 overnight! $1.26!. There is serious to extreme physical demand near $30 for silver. The paper market for silver is a joke and is being made obsolete. Anyone short silver is playing with fire.

Andy also told me of huge sovereign and central bank orders for physical at 1635 and 1625, though we were both surprised at the willingness to fill the orders at 1645. Every time The Cartel takes paper gold down, they lose more physical metal out the back door. This cannot continue much longer. It simply cannot.

Uncle Ted kicks ass. Here's an excerpt from his latest:

"In silver, the price action has been so poor that every day the phrase “the beatings will continue until morale improves” plays in my mind. Taken with everything discussed above, I’m left with the impression that the commercials are deliberately making silver look so bad in order to extract every last drop of blood from the speculative selling stone. At least the beatings are keeping the price below the moving averages, so this week’s reports should indicate a further reduction in the total net commercial short position in silver. Given the motive behind the poor silver price action, my guess is that JPM has reduced its concentrated short position by a bunch.
I’m sensing that JPMorgan is now down to 14,000 contracts net short in COMEX silver futures. That’s down from the 16,000 contracts at the last COT cut-off and down a whopping 5,000 contracts from the 19,000 contracts JPM was short in the last Bank Participation Report, as of April 3. There has been a noticeable determination on JPMorgan’s part to get its silver short position down. Clearly, if there is intent behind the rotten price action, it is for JPMorgan to buy back as many of its silver shorts as possible. I’d rather the whole thing blow up in their crooked faces, but the next best thing is for them to cover as they have done."
God bless Uncle Ted.
I still can't post charts. Everybody else can but not me. Seriously. But The Tech Team is working on it so I hope to be able to post them again later today.
I know you're sick of hearing me say this but the key word is "PATIENCE". Silver isn't going to $20. It's not going to $25, either. The domination and manipulation of silver by The Evil Empire is ending, whether they want to admit it or not.
That said, only experienced traders with money to lose should be playing in the actual casino. The manipulation can surely outlast your trading account and, absent a clear trend higher, traders will be whipsawed to death. Join the central banks, large institutions and wealthy individuals worldwide. Buy physical metal and take delivery. Hold it in your own vault or safe. To paraphrase WOPR: "A strange game. The only winning move is to take delivery."
Keep the faith. TF

About the Author

Founder
turd [at] tfmetalsreport [dot] com ()

  445 Comments

Zoltan
May 3, 2012 - 10:32am

First

Couldn't help myself.

Let the hating begin.

Z

Anonymous
May 3, 2012 - 10:32am

Removed comment

Removed comment.

bbacq
May 3, 2012 - 10:34am

sequond? drat, thurd

closest I ever bin

cpnscarlet
May 3, 2012 - 10:34am

No time for hate

But time enough to say...

Stack. Period. EOL.

Platinum_Investor
May 3, 2012 - 10:38am

WOW Precious Metals dealers ANGRY! Tulving.com

I just called to place an order for $1000 bag of half dollars. The price was $30.32 ask I said ok. While I was talking to him the price dropped to $30.27 so I asked him can I get the new price. He got so angry that I asked that he refused to take my order at all and hung up on me.

He told me to call back at 8:30 am west coast time when their will be other people to take the order.

So he bought himself another 1 hour to see if the prices bounce back up.

This tells me either this guy is a serious arrogant prick. Or he will use any excuse not to sell silver at these low manipulated, depressed prices.

Platinum_InvestorPlatinum_Investor
May 3, 2012 - 10:39am

I even called him back and

I even called him back and said Sir, I still want the price quoted, I just asked a question as a customer.

He said "I DO NOT WANT TO TAKE THE ORDER" then said call back in one hour.

May 3, 2012 - 10:41am

Watch this

Another great presentation from turdite Brent at Santiago Capital. Just click the link and enter your first name. It's about 6 minutes in length.

https://play.goldmail.com/brvqd25g27y3

Exbroker
May 3, 2012 - 10:41am

Silver near 30

Still holding out for 26 on Silver. On a long term chart, it can go to 25ish and still be attractive. Under 25 and ... well I don't think we want to go there.

Duke
May 3, 2012 - 10:42am

First

First

my mothers keeper
May 3, 2012 - 10:43am

tf...one of the things i

tf...one of the things i really appreciate about you is the insight you provide into the mind of a trader! you have no idea how many years i've sat at this computer and wondered what is going on in the markets and how do i read these charts. you provide a wonderful education! thank you so much...

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Key Economic Events Week of 10/21

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10/24 10:00 ET New home sales
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Key Economic Events Week of 10/14

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10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
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10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
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10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
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Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
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9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
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9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
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Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
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Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
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9/3 10:00 ET Construction Spending
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9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
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8/29 8:30 ET Q2 GDP 2nd guess
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8/30 8:30 ET Pers. Inc. and Cons. Spend.
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Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
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