The Games Continue - 1630 & 29

334
Fri, Jun 15, 2012 - 11:21am

As we await what could be an historic weekend, we might as well take some time to look at the current state of the paper metal markets. In a stunning development, prices appear to be capped.

First of all, we have to address what happened this morning. Even ZeroHedge, which for whatever reason attempts to completely ignore metal price manipulation, got in on the act this morning. (https://www.zerohedge.com/news/gold-stop-hunt-goes-full-retard). In this instance, they are correct about the "stop hunt" but the bigger news (which isn't mentioned) is "whom" is doing the hunting and, even more suspiciously, the timing of it all.

Take a look at the chart below. Note that the $10 spike UP occurred at 8:26 EDT. At exactly 8:30 EDT, the NY Fed released a completely dreadful "Empire State Manufacturing Index" update. ( https://www.zerohedge.com/news/plunging-empire-manufacturing-index-confirms-ongoing-economic-slide-imminent-central-planner-in). If we were to assign rationale for a $10 spike to the "disappointing" economic number, shouldn't the spike have occurred at 8:30 or 8:31? Hmmm? Nope, As you can plainly see, the spike occurred at 8:26.

Now, we could probably spend all day asking questions like:

  • Was the data "news" leaked?
  • Were the trades executed by a stop-trolling spec algo or a stop-trolling Cartel algo?
  • Was it all pre-designed to act exactly at 8:30, using the headlines as "cover"? And did someone just get antsy and/or program the trade to begin prematurely?

Of course, well never know. The CFTC couldn't give a rat's ass about things like this. They're too busy planning parties where they spend the money saved by Gensler and Chilton never seeing a barber. Regardless, all of this is simply today's "Exhibit A" of the total farce which the paper metal markets have become.

So, anyway, back to 1630 and 29. Take a look at the chart above and you'll see something else: Another foray above $1630 that was quickly beaten back. Why is $1630 so special. Well, I could cite a number of reasons but let's stick to the charts. First, I lifted the chart below from Trader Dan. (Dan doesn't get to post much but that doesn't mean you shouldn't still be checking his site daily https://www.traderdannorcini.blogspot.com/

Note the horizontal and diagonal resistance around 1630. You can also see The Cartel capping action on this chart:

The effort to keep silver below $29 is even more obvious and...odd. Seriously, why $29? What makes $29 so important to JPM? (Since we know from the latest CFTC data that JPM is the only firm shorting at this point, it is logical to deduce that JPM is the party capping price at $29.) July12 silver options expire on June 26. That's still 7 trading days away and $29 is an odd number to defend for that sake. There's far more known option open interest at $30 than there is at $29. Maybe you think I'm crazy. Maybe you think I'm seeing things. Maybe you should have a look for yourself.

At any rate, price is clearly being held below $1630 and $29 and I sure don't expect that to change over the remainder of the day. There might be some fluctuation but why on earth would anyone be willing to gamble by taking a large position at this point. It's much safer to lay low, watch the headlines and get ready for Monday.

As you all know, the Greek elections are Sunday. Regardless of the outcome, we can expect fireworks when everything re-opens Sunday night. And do not overlook the Egyptian elections which are also this weekend. Boyohboy, if you want to talk about long-term, Middle Eastern geo-political ramifications, look no farther than the Egyptian elections.

In the time it has taken me to type this, I see that another foray above $1630 has been beaten back. That's pretty funny. Again....what a complete joke the paper metal markets are. However, that should not stop you from buying even more physical metal. I am still expecting a hot, explosive summer for gold and silver prices. Physical demand is extraordinarily strong and events are swirling that will change forever the dynamic of how gold and silver are priced. Be patient and continue stacking.

Have a great weekend but be prepared for a very wild and volatile week ahead.

TF

About the Author

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

  334 Comments

  Refresh
FMOTL
Jun 18, 2012 - 7:47am

Thanks XTY

Yea ! thought so , cant beat those Cubans for feel good music and dance. Big humongous fan of Los Van Van myself , love those salsa vibes !!

Jun 18, 2012 - 6:05am

FMOTL - voila

oye el consejo by ibrahim ferrer
FMOTL
Jun 18, 2012 - 5:52am

Greek riot dog

Sounds Cuban, but i could be wrong , either way I could definitely dance to it

FMOTL
Jun 18, 2012 - 5:43am

Re Greek riot dog

That was a fantastic sound track for the Greek riot dog vid. Anyone know who it is ?

redwood
Jun 17, 2012 - 11:03pm

http://blogs.wsj.com/marketbe

https://blogs.wsj.com/marketbeat/2012/06/17/greek-election-lehman-moment...

Oh look the "Lehman moment" has been averted. But please stand by it is only for "now". Can't let a good headline go to waste can we? Meanwhile the real work of destroying America continues....

Hold over
Jun 17, 2012 - 10:30pm

Max kaiser said a few days

Max kaiser said a few days ago that Greece will not leave the euro unless Germany wants them to. Stating, that Germany literally owns Greece , and the Greek people have no choice short of a revolution.

LarryClinkinKY
Jun 17, 2012 - 10:11pm

@KlinkinKY

Just so you know, I don't "follow" Taibbi and had not seen the horrendous remarks he made about Breitbart. Therefore, I wholeheartedly agree with you on the foul statement he made in the article you posted. I was praising the article, not the writer's body of work. But I can certainly see how you would have the reaction you did. Pardon my ignorance on this part of the man and his commentary about Breitbart.

After being a political junkie and a 'conservative' for decades, a few years ago I stopped. Not 'cold turkey', but 90% of the stuff I ignore. It's impractical and impossible to ignore all of it, especially the partisan feces-slinging that both wings of the collectivist D&R parties throw at each other as distraction. That's what we have in America and most or all of the world today. They, the politicos, are almost all egocentric, power hungry liars and greedy, self-serving cheats. Maybe all of them are. If one honest man shows up in Washington, and isn't "turned", they are ignored or reduced to tin-foil-quack status.

But I do love seeing your cartoon clips and your comments. Please do keep both of those up.

¤
Jun 17, 2012 - 9:46pm

The Rain Song Live (HD)

Enjoy!

Led Zeppelin - The Rain Song Live (HD)

Visit the FAQ page to learn how to track your last read comment, add images, embed videos, tweets, and animated gifs, and more.

ClinkinKYMickey
Jun 17, 2012 - 9:31pm

@ Mickey

The bigger picture

Submitted by Mickey on June 17, 2012 - 9:06pm.

Is when we all kick the bucket we are all alike.

----------------------------------------------------------

You're right, but when I "kick the bucket" I hope to make it a little easier for my children and grandchildren to "right the ship". I have no illusions that this mess will be rectified during my lifetime but I would hope that I leave them a better chance to do same in theirs.

gatortraderJust A Regular Guy
Jun 17, 2012 - 9:12pm

@Just A Regular Guy

Its all going to be sold off, real soon, key is euro 1.27

Subscribe or login to read all comments.

Contribute

Donate Shop

Get Your Subscriber Benefits

Private iTunes feed for all TF Metals Report podcasts, and access to Vault member forum discussions!

Key Economic Events Week of 5/18

5/18 2:00 ET Goon Bostic speech
5/19 8:30 ET Housing starts
5/19 10:00 ET CGP and Mnuchin US Senate
5/20 10:00 ET Goon Bullard speech
5/20 2:00 ET April FOMC minutes
5/21 8:30 ET Philly Fed
5/21 9:45 ET Markit flash PMIs for May
5/21 10:00 ET Goon Williams speech
5/21 1:00 ET Goon Chlamydia speech
5/21 2:30 ET Chief Goon Powell speech

Key Economic Events Week of 5/11

5/11 12:00 ET Goon Bostic speech
5/11 12:30 ET Goon Evans speech
5/12 8:30 ET CPI
5/12 9:00 ET Goon Kashnkari speech
5/12 10:00 ET Goon Quarles speech
5/12 10:00 ET Goon Harker speech
5/12 5:00 ET Goon Mester speech
5/13 8:30 ET PPI
5/13 9:00 ET Chief Goon Powell speech
5/14 8:30 ET Initial jobless claims and import prices
5/14 1:00 ET Another Goon Kashnkari speech
5/14 6:00 ET Goon Kaplan speech
5/15 8:30 ET Retail Sales and Empire State index
5/15 9:15 ET Cap Ute and Ind Prod
5/15 10:00 ET Business Inventories

Key Economic Events Week of 5/4

5/4 10:00 ET Factory Orders
5/5 8:30 ET US Trade Deficit
5/5 9:45 ET Markit Service PMI
5/5 10:00 ET ISM Sevrice PMI
5/6 8:15 ET ADP jobs report
5/7 8:30 ET Productivity
5/8 8:30 ET BLSBS
5/8 10:00 ET Wholesale Inventories

Key Economic Events Week of 4/27

4/28 8:30 ET Advance trade in goods
4/28 9:00 ET Case-Shiller home prices
4/29 8:30 ET Q1 GDP first guess
4/29 2:00 ET FOMC Fedlines
4/29 2:30 ET CGP presser
4/30 8:30 ET Pers Inc and Cons Spend
4/30 9:45 ET Chicago PMI
5/1 9:45 ET Markit Manu PMI
5/1 10:00 ET ISM Manu PMI

Key Economic Events Week of 4/20

4/20 8:30 ET Chicago Fed
4/21 10:00 ET Existing home sales
4/23 8:30 ET Weekly jobless claims
4/23 9:45 ET Markit flash PMIs
4/24 8:30 ET Durable Goods

Key Economic Events Week of 4/6

4/8 2:00 ET March FOMC minutes
4/9 8:30 ET Producer Price Index
4/10 8:30 ET Consumer Price Index

Key Economic Events Week of 3/30

3/31 9:45 ET Chicago PMI
4/1 8:15 ET ADP Employment
4/1 9:45 ET Markit manu PMI
4/1 10:00 ET ISM manu PMI
4/2 10:00 ET Factory Orders
4/3 8:30 ET BLSBS
4/3 9:45 ET Market service PMI
4/3 10:00 ET ISM service PMI

Key Economic Events Week of 3/23

3/24 9:45 ET Markit flash PMIs
3/25 8:30 ET Durable Goods
3/26 8:30 ET Weekly jobless claims
3/27 8:30 ET Personal Inc and Spending

Key Economic Events Week of 3/9

(as if these actually matter)
3/11 8:30 ET CPI
3/12 8:30 ET weekly jobless claims
3/12 8:30 ET PPI
3/13 8:30 ET Import Price Index

Key Economic Events Week of 3/2

3/2 9:45 ET Markit Manu PMI
3/2 10:00 ET ISM Manu PMI
3/2 10:00 ET Construction Spending
3/4 8:15 ET ADP employment
3/4 9:45 ET Markit Service PMI
3/4 10:00 ET ISM Services PMI
3/5 8:30 ET Productivity & Unit Labor Costs
3/5 10:00 ET Factory Orders
3/6 8:30 ET BLSBS
3/6 10:00 ET Wholesale Inventories

Recent Comments

by lakedweller2, 8 min 24 sec ago
by boomer sooner, 12 min 16 sec ago
by OceanX, 12 min 33 sec ago
by lakedweller2, 27 min 47 sec ago