And So It Was

292
Tue, May 22, 2012 - 5:16pm

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 ( https://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.

UNCLE SAM BULLYING BROKERS OVER SILVER? [Plus, JPM's $7 Billion Blunder] - Woody O'Brien

About the Author

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

Contribute

Donate Shop

Get Your Subscriber Benefits

Exclusive discount for silver purchases, and a private iTunes feed for TF Metals Report podcasts!

Key Economic Events Week of 4/22

4/22 10:00 ET Existing Home Sales
4/23 10:00 ET New Home Sales
4/25 8:30 ET Durable Goods
4/26 8:30 ET Q1 GDP first guess

Key Economic Events Week of 4/15

4/16 9:15 ET Cap Util and Ind Prod
4/17 8:30 ET Trade Deficit (Feb)
4/17 10:00 ET Wholesale Inventories
4/18 8:30 ET Retail Sales (March)
4/18 8:30 ET Philly Fed
4/18 10:00 ET Business Inventories (Feb)
4/19 8:30 ET Housing Starts and Building Permits

Key Economic Events Week of 4/1

4/1 8:30 ET Retail Sales (Feb)
4/1 9:45 ET Markit & ISM Manu PMIs
4/1 10:00 ET Construction Spending (Feb)
4/1 10:00 ET Business Inventories (Jan)
4/2 8:30 ET Durable Goods (Feb)
4/3 9:45 ET Markit & ISM Services PMIs
4/5 8:30 ET BLSBS

Recent Comments

by goldcom, 10 min 47 sec ago
by Turd Ferguson, 25 min 13 sec ago
by Turd Ferguson, 29 min 23 sec ago
by LP, 34 min 40 sec ago
by LP, 35 min 40 sec ago
randomness