I'm not liking the looks of things here so this post is intended to keep you on your toes in the very short term.
What has me bothered is the action over the past 36 hours or so. You'll recall that, back on Tuesday, I typed up a post that drew attention to the incredible resilience silver was showing near $28.60. Over a period of more than two weeks, each time paper silver dropped below that level, it was bought in sufficient size to bounce it back up. Then, at approximately 2:00 a.m. New York time yesterday morning, price was raided in sufficient size to break silver down through $28.60 and $28.40, toward $28.10. Though not surprising to most of us, the move was so brazen that even Uncle Ted mentioned it in his midweek update yesterday: (https://www.butlerresearch.com).
"I’ve commented recently that true market liquidity has been lacking in silver. Last night, at a time when liquidity is at its thinnest when it does exist, the price of silver was smashed for about 50 cents with no notable price weakness in other commodities, like gold. This was no accident and is of the type of expected price stab to the downside I’ve written about recently. There should be no doubt that this was solely designed to induce additional technical fund selling on the COMEX. The good news, in addition to the price struggling back the rest of the day, is that it looks like significant tech fund selling did occur, based upon volume statistics. The bad news, of course, is that instead of free markets, we must endure such intentional manipulation by JPMorgan and other collusive COMEX commercials until the final day of resolution."
I view the wee hour attack as a warning. Raids such as yesterday's are not random events and are almost always a sign of future nefarious intent.
Price rebounded yesterday due to overwhelming and significant demand for physical silver, at both the AM and PM London fixes. However, silver has failed to hold the ground it regained and has since slipped back to $28.49 as I type. This is even happening while today's U.S. economic news has been dismal: https://www.zerohedge.com/news/2013-03-28/chicago-pmi-tumbles-production-plunges-september-2009-levels & https://www.zerohedge.com/news/2013-03-28/chart-day-deja-vu-all-over-again & https://www.zerohedge.com/news/2013-03-28/final-q4-gdp-misses-personal-consumption-slides-once-more-full-breakdown & https://www.zerohedge.com/news/2013-03-28/initial-jobless-claims-miss-most-over-4-months-emergency-claims-v-fib
So, now, here's the problem. Not only is London closed tomorrow, it's closed on Monday, too. This means that there will not be another price fix until the London AM of Tuesday. This also means that silver will trade on the very light volume Globex tomorrow, again on Sunday night and all day Monday and then Monday night without a price fix for physical allocation. This gives The Bad Guys all sorts of time to jam price lower and entice even more fresh LargeSpec, momo-chasing dollars. It's entirely possible that they could even round-trip the thing by jamming price all the way down toward $27 and then buying it back up to near $28, all before the Tuesday AM fix. Not saying this WILL happen. I'm simply pointing out the possibility to you so that:
- You don't freak out and panic.
- You are ready to buy the dip, if it develops.
Here are the charts that spell this out:
And here are the gold charts to accompany:
OK, that's all for now. Hopefully this is nothing but a false alarm, a siren in the distance. However, if things get a little dicey later today and then into Monday, don't say you weren't warned.