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 34 and .53. Gold is still above its 50-day, which today is near 30 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.