Den Of Vipers

Wed, Sep 2, 2015 - 11:42am

Ever wonder how it is that 90% of all Comex traders get completely wiped out within 90 days of wandering into The Den of Vipers? Today's action is a perfect illustration of how these "markets" are utterly controlled by the Bullion Banks and the HFTs, all to the detriment of anyone foolish enough to think they are trading on a fair and level playing field.

Today's economic news was, once again, ALL BAD. This caused some ripples in the metals early but, with gold paired so tightly with the yen, no headline was going to move gold and silver specifically without a concurrent yen surge.

What happened next caught quite a few people by surprise. Silver began to surge higher, moving from $14.46 to $14.81 in just over an hour. That's 2.5% and $1,750 for any contract a computer was lucky enough to hold before the spike began. Ah, but there's the rub. Just as soon as The Little Guys saw the rally, price immediately reversed and was shoved back down. Just 45 minutes later, silver was already back down and below where the spike began...all the way down to $14.43.

On the 3-minute, intraday chart, it looked like this. Again, no news. Just some HFT stop-hunting and Bullion Bank manipulation:

And gold wasn't immune to the nonsense, either. I was on the phone with Andy at about 10:35 EDT when suddenly he stopped mid-sentence and burst out laughing. I enquired as to what was so funny. He said it was the 7,000 contracts he just saw go by...all dumped at once in a clear effort to drive price back down to/below the 50-day MA. We both chuckled at the audacity of it all. Here it is on the 1-minute chart:

So, now, here we are. I have lasts of $1134 and $14.53. Gold is still above its 50-day, which today is near $1130 on the Dec15 contract. And, if you hadn't been watching all morning and/or attempting to trade, you'd never know that anything of significance had occurred in silver. It's only off 9¢ on the day.

However, here's the end game. If you're wondering why I've cited the BBs as complicit in today's scam, check what is being painted onto the daily chart again. Another bearish engulfing candle and ORD! I am 100% confident that, when the BB traders saw the HFT squeeze move to a higher high than yesterday, they pounced on the rally with the intent of painting this third bearish reversal in the past 13 days. All of this ahead of the next BLSBS and an attempt to wrong-foot as many unsuspecting traders as possible prior to 8:30 am EDT Friday.

Check this nasty, little chart. There have now been three rally attempts in silver over the past month and all three have been blunted and reversed with ORDs. This is NOT pretty and anyone crazy enough to be "trading" this market would almost have to be short given these clear, formerly reliable indicators. (I say "formerly" because it's all such a scam now. Every market is driven by the Central Bank intervention in Forex and VIX, causing the HFTs to react. Waves and cycles are relics of the past.)

Gold isn't quite as "bad" but, again, it's a larger market and almost directly driven by the yen-following HFT algos. Silver, being a puny little viper pit, can be made to do whatever The Evil Ones prefer on nearly a daily basis. Here we go again, though. As is often the case, a handy pennant has been painted on the daily chart...just in time for BLSBS Friday. IF ANYTHING SHOULD CONVINCE YOU OF THE CONTROL AND MANIPULATION, IT'S THIS!! How many times has gold been positioned into the corner of a pennant or just above a key moving average as BLSBS approaches? Just this year alone has seen this happen at least 3 or 4 times!

So, anyway, I think I'll stop here because I assume you get the point. Friday will be a very interesting day and then we all get a 3-day weekend. I don't know about you but ole Turd is really looking forward to it.


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turd [at] tfmetalsreport [dot] com ()


CPE · Sep 2, 2015 - 11:43am



Mickey · Sep 2, 2015 - 11:46am

home court advantage is important

for them. good strategy would be to ride their coattails, if we could. I am not on that e mail list. 

Thanks for reminding us but it just made me sick

I watch a 1 minute chart of gold and silver and miners etc, and suddenly out of nowhere we see heavy volume to te downside. I'd like to see heavy volume to teh upside and a one minute tick up that is enormous and gets followed up.

Marchas45 · Sep 2, 2015 - 11:47am


Silver Recliner Report 62 and The Old Fart is Still Stacking

Silver Recliner Report 62
georgev · Sep 2, 2015 - 11:48am



cashonly · Sep 2, 2015 - 11:50am


"Ye serpents, ye generation of vipers, how can ye escape the damnation of hell?"

georgev · Sep 2, 2015 - 11:50am

premature again

damn, not quick enough

twippers · Sep 2, 2015 - 11:57am

Long weekend

Guaranteed the crooks will want the metals red for the sheeple to ponder over during the long weekend

Mickey · Sep 2, 2015 - 11:58am

taking delivery at comex

at one point buying a contract was an effective eficient way of buying gold or silver with lower cost. Then about 4-5 years ago as memory has it, brokers dissuaded longs from taking delivery.

Is that still the game now?

I assume Druckenmiller bought GLD to take delivery and he should be big enough and influential enough to get it. That too is an effective and efficient way of getting gold. If you are on the right list.

infometron · Sep 2, 2015 - 12:01pm

@fellow turdite Re: Arbitrage FF & GCU

Can't remember if it was Mickey or not, but a fellow turdite alerted us to an arbitrage opportunity between FF and GCU... doesn't seem to be happening. Anyone know why?

tyberious · Sep 2, 2015 - 12:07pm

Silver Stacking Warriors are

Silver Stacking Warriors are Brutally Breaching Enemy Barricades

Silver Stacking Warriors are Brutally Breaching Enemy Barricades
arch stanton · Sep 2, 2015 - 12:07pm


got my ass handed to me on first mining finance. I then read the arb opportunities from yesterdays post from the guys that stay on top of things (unlike me) I just got arbitraged the wrong way. Time to double down.

climbthathill · Sep 2, 2015 - 12:08pm

Back to positive

Silver is now up 7 cents for the day...

How weird is that?

4 oz · Sep 2, 2015 - 12:12pm

Consider This~~~~

Okay.... had a little time this morning and decided to do a little at JM Bullion.

So I added up ALL the ASE that weren't MS70's or gilded currently listed as "In Stock and ready for shipping."

Varying in price from about $22 - $28 mostly, with some all the way up in the $40's....and totaled 9203 ASE's available. Thinking a step further--- at $28 per-- someone could drop around 250k and scoop up ALL JMB's ASE supply today.

lol, Got Milk?

· Sep 2, 2015 - 12:13pm

What a JOKE this is

But at least we might avoid that third ORD!

J Siefert · Sep 2, 2015 - 12:13pm



mike97 · Sep 2, 2015 - 12:15pm

Silver up but they just crashed oil

Games going on - silver up a nickel and oil crashed $1.15 and Japan still buying US dollar as yen is down.

Mickey · Sep 2, 2015 - 12:16pm

Not a chance

If Druckenmiller is stoopid enough to have bought GLD in order to obtain physical, then he's a fool. Only the APs can redeem shares and they'll be damned if they let a regular investor take "their" gold.

Had he really wanted to pursue delivery through a fund, PHYS would have been his best option. By accumulating gradually, he could have bought at a discount to NAV, too.

J Siefert · Sep 2, 2015 - 12:17pm





tyberious · Sep 2, 2015 - 12:21pm

Jay Taylor

 Robert McHugh, President and CEO of Main Line Investors, provided his view of the stock, bond and precious metals markets. Download

Bill Laggner talks about the extraordinary gains by The Bearing Fund during the 2008-09 market crash and believes we are in a downturn again. Download

· Sep 2, 2015 - 12:21pm

This is awesome

Banks make money.

A few HFTs make money.

Small Specs get slaughtered.

J Siefert TF · Sep 2, 2015 - 12:22pm



I remember it now but us over 70's need reminders wink

Grey Mare · Sep 2, 2015 - 12:23pm


Arbitrage still possible on TSX. FF at 0.29, while GCU is at 18.8. With the merger, each GCU share held gives you 1 FF share and a fractional share in a new spin-off company.

Of course, your GCU shares will be tied up in the transfer and who knows what share price (of either company) will be in Nov-Dec. But, if you already own FF shares, trading them in seems a no-brainer.


phil288 · Sep 2, 2015 - 12:25pm


I too looked into the arbitrage and was surprised at the extent which continues through to today. I assume that this is a representation of the complete lack of interest in the sector and thus the overvaluation of FF since it is a long term play. Another possibility is that the perception is that it is not going to be approved by FF shareholders. GCU is not going to be in production before 2019 under the best of circumstances and the premium to be paid for the stock seems excessive relative to the price before the merger announcement. This is a classic conflict between price and value and of course either one will be subject to the gold price four years hence and the ability to finance a new mine.

Dr. P. Metals · Sep 2, 2015 - 12:28pm


my $.02, i'm not a finance guy, but this seems to make sense: Another possibility is that the perception is that it is not going to be approved by FF shareholders.

first thing I thought of. There appears to still be some "risk" somewhere in the deal is how I read it.

· Sep 2, 2015 - 12:29pm
SS121 · Sep 2, 2015 - 12:31pm

4 oz. Thanks for the count up

Those premiums are so ridiculous, they probably do not want to sell those odds and ends and then be SOLD OUT of Eagles across the board.

Grey Mare · Sep 2, 2015 - 12:31pm


Not obvious to me that FF shareholders get to vote. And it's a sweet deal for GCU shareholders; doubt they'll turn it down.


cavalier · Sep 2, 2015 - 12:32pm

Turd Can you add dollar/yen chart to your web page?


It is helpful to see gold, silver and dollar daily charts on your webpage right next to each other.

Given the importance you place on the dollar/yen relationship, can you add a chart below the dollar chart for it? If you could, I believe it would be helpful.

Thanks for all you do!

infometron · Sep 2, 2015 - 12:38pm

Re: FF & GCU arbitrage

Thanks guys! Your comments all make sense...

I swapped 75% of my FF for GCU (& bought more GCU) yesterday.

Another interesting opportunity is DV, which is up almost 50% on a Skeena hostile takeover attempt... I doubt Hekla, a major shareholder, will let DV go too easily and may come forth with a counteroffer to buy up a majority of shares.

Gramp TF · Sep 2, 2015 - 12:39pm

Kidding, Right Turd!?

That's like every now and then I just open the Yahoo page to see what's the important news of the day! Generally it's about the freak of the week aka what's his name there, oh ya , Jenner , or some other vitriol. Imagine if the media was used for good versus ignorance? Man!

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