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.