Direct Price Manipulation and Chart-Painting

Tue, Sep 27, 2016 - 10:40am

Today is October option expiration and Friday brings the end of the month and quarter. Therefore, we should not be surprised by the level of abject and overt price manipulation and chart-painting that is being done this week.

As we discussed late last week, below is the most important chart for this week. We suspected that The Banks would intervene in order to keep price from a new monthly high AND below this long-term trendline. The LAST thing The Banks want is a breakout and rally just as Q3 ends and Q4 begins as this would almost certainly inspire new 2016 highs and a virtuous cycle of even higher prices.

Therefore, what you are witnessing today should come as no surprise. And how do we know that this is a direct Bank price manipulation event? Three things.

  1. Check the open interest versus price. Once again yesterday and just as suspected, open interest rose while price was falling. Given the technical structure, I can assure you that that this was NOT new Spec shorting driving OI higher. Instead, these are The Banks meeting every bid and then some with new naked shorts. Open interest in gold rose by over 6,000 contracts on yesterday's paltry $2 gain. For the two days of Friday and Monday, where price almost inexplicably was a total of -$1, total OI was up over 13,000 contracts.
  2. Check the action versus the known HFT drivers. Is the gold "price" still coupled and linked to USDJPY and bonds, as we've seen for months and years? Hmmm. See below. Note the divergences on these five day charts.

 3. Check the moving averages. The Banks also know that they'd prefer to get some help in this effort so we must check to see if an effort was made to break a significant moving average. As we saw just a few weeks ago, if The Banks can break the 50-day moving average, then the TA-oriented HFTs will jump right on the train and do some of the selling for The Banks. Well, see below. First, look at where gold is now relative to its 50-day at $'s back below. And how did it get below? With one big Cartel shove of nearly 7,000 contracts earlier today!

And, in case you're wondering, it's the exact same freaking thing in silver, which has also been rigged back below its own 50-day. And how did it get there? The exact same way...only in silver, it happened yesterday. In fact, since Dec16silver hit a post-Fedline high of $20.14 back on Thursday, it has been nothing but straight down in a deliberate attempt to keep silver from generating the momentum that would take it back toward the 2016 highs.

And check this chart below. Do you think this is pure coincidence? Where else but in the Cartel Bank-controlled paper derivative silver market would you get such identical chart patterns? As we discussed in yesterday's podcast, this is overt and shameful...but it's not like the CFTC or anyone else actually cares. Note the identical 4-day rallies followed by identical 4-day smashes (presuming this current smash finishes up tomorrow). After bottoming near $18.50 two weeks ago and $18.80 last week, I guess we should expect a bottom tomorrow near $19.10.

Look, I wish I had better news but you all know by now that The Banks remain (mostly) in control of their Paper Derivative Pricing Scheme and will remain so as long as The Scheme persists. Though we know how this all eventually ends, in between it's extraordinarily painful and frustrating to watch. In the end, all you can do is attempt to minimize your trading exposure so that you don't get crushed along with all of the other unwitting dupes. The correct strategy is to hold physical metal and..maybe, if so inclined...a high quality and diversified portfolio of mining shares. Other than that, you must recognize that The Banks will ALWAYS look to screw you because you are their enemy. The price action today and since last Thursday only serves to once again prove this point.


About the Author

turd [at] tfmetalsreport [dot] com ()


Sep 27, 2016 - 10:41am


party...first time...

Sep 27, 2016 - 10:42am



Sep 27, 2016 - 10:47am



Sep 27, 2016 - 10:49am


4 OK 5....

R man J
Sep 27, 2016 - 10:50am

Stacking versus Retirement

Stacking continues to win because it is much cheaper. 

ChaCha Mars
Sep 27, 2016 - 10:52am


Good time to clean up our acts individually & collectively, concentrate on what's real and good. God bless America & the world!

Sep 27, 2016 - 10:53am

I'm not budging

I hold a long list of silver miners, some are quality (Majestic, Endeavour, Fortuna, etc), others are developmental plays that can only succeed (or fail) over time. Time, that's all we have right now.... and the knowledge that we will ultimately succeed in being in the right place at the right time. But at the moment, my butt is puckered and that's not a good thing.

Sep 27, 2016 - 10:57am

Stealing Fourth...

Been a while. Must be trying to work...

Marchas is working for me. So, KEEP STACKING!

According to this article China has over $24 Trillion in debt, or 247% of annual GDP... Who is scamming who? All countries are working the fiat machine. Is it hyperinflation when ALL countries are printing fiat like mad, so no one really notices because no one particular fiat crashes. The pool of water just keeps getting higher and higher. What use to be 6" of water in the pool is now 8' of water. M3 has just risen slowly for the past 100 years we grew accustomed to it. Just the last 8 years it has gone from 5' to 8' which is why it is so noticeable...

Can the Keynesian experiment actually keep going till the pool overflows at say 12'? What point does debt no longer really matter as long as the TOP .01 keep getting 80% of all profits? Can they keep metals down for another 5 years? 10 years? I think so... They now have the computer expertise to manipulate anything almost instantly... Just keep the water rising almost equally with each country taking a hit now and then, but with no one single Central Bank getting raped....

Sep 27, 2016 - 11:04am


By late NEXT week, there is an increasing possibility of a hurricane moving into the Gulf of Mexico. These sometimes cause an oil spike as rigs are evacuated.

Sep 27, 2016 - 11:24am

Thanks For The Superb

 technical/manipulation analysis, Turd. 

It seems like good timing for payday tomorrow, as the PM prices are being held down. 

I was actually thinking about buying some BitCoin for the first time and you posted the charts regarding BC..,

i was also thinking about buying some mining stock for the first time too and with AG having such a huge correction, it might be a good time to get in.

As David Morgan recently said, "would you rather have the golden egg or the goose that laid the egg?"


Sep 27, 2016 - 11:38am

Top Ten?


Rough week . . .

Sep 27, 2016 - 11:52am

Miners leading indicator?

 I am not going to bemoan the continuous flogging that the miners are getting. I just have to point out that some of them are down to where they were pre 1300+ gold. Are the BBs going to try and ram gold all the way back to 1250? I know there a lot of support lines that can be drawn from here but ouch. With DB sub $12 and all the other banking stress, physical may go on sale for the last time me thinks. 

Sep 27, 2016 - 11:53am


The action this week makes me wonder if there might actually be something to all the sturm & drang surrounding the Sept. 30 yuan/sdr/gold story we've been peppered with. I highly doubt anything will come of it but ... maybe.

Sep 27, 2016 - 11:53am

the golden egg or the goose

Why does no one let these damn things hatch. Seems to me "geese" that lay golden eggs is the way to go. Or am I just weird?


Sep 27, 2016 - 11:54am


The monkeys are BACK, swinging in the trees. And their is blood in the water, here comes the Sharks. They are BACK.

Sep 27, 2016 - 12:00pm

They're pushing it even lower....

I feel like going to the bank...and robbing it.

Edit...Crime pays after all, right?

Sep 27, 2016 - 12:02pm

Well Well Well

Looks the the efen spot is falling down one. WELL I guess I need to Keep Stacking

Sep 27, 2016 - 12:05pm

"Tis a gift, I say!"

Stack on!

Or, as the man has said, "BTFD!"

In the years down the road, will YOU have enough? Or, will you wish you HAD BTFD some more?

Just sayn'

Sep 27, 2016 - 12:14pm

100 day moving averages being tested

Just spent half of my dry powder on JNUG and SILJ

I think the 100 day SMAs will hold, but wtfdik!

Sep 27, 2016 - 12:21pm


Can you share your reasoning on the 100 day "holding the line"?

Just curious, (and ignorant).

Thanks IA

Sep 27, 2016 - 12:22pm

Did any of our future presidents even mentioned...

in the last night show...that the markets had been rigged?...I guess Trump mentioned something about bubbles.

Sep 27, 2016 - 12:22pm

Re today's price changes

No sense sitting around sure to read this, instead:

Sep 27, 2016 - 12:29pm

@AC Re 100 SMAs

In a phrase, 'wishful thinking!' :^))

I should have been more precise, I'm talking 100 day SMAs for Au & Ag, which have provided nice support these past few months. Besides, 'smart money' must know things are going to HIAHB, so I anticipate they are buying now...

That makes me 'smart money!' Uh oh, caveat emptor!!

Sep 27, 2016 - 12:29pm

From this post

"After bottoming near $18.50 two weeks ago and $18.80 last week, I guess we should expect a bottom tomorrow near $19.10."

I have a last of $19.13 after a low of $19.05. I guess we'll see...

Sep 27, 2016 - 12:38pm


Trump Blew it big time. When challenged on his bankruptcies he could have said,

" Who is better suited to navigate through a bankruptcy? Me! I've been through 4 and come out stronger. The USA is bankrupt and needs me. How many payrolls has Ms Clinton met?"

That was his "Reagan" moment he missed. Remember the Age question? When Reagan was asked by the moderator if he thought age should be an issue he quipped, " No, I don't believe Mr. Mondale's youth and inexperience should be an issue." 

Even Mondale smiled. Reagan had a way of disarming his opponents. No one comes close.

Government Is the Problem

  • Government's first duty is to protect the people, not run their lives.
    -- Quote by Ronald Reagan at the National Conference of the Building and Construction Trades, AFL-CIO (March 30, 1981)
  • Government does not solve problems; it subsidizes them.
    -- Quote by Ronald Reagan
  • Government is not the solution to our problem; government is the problem.
    -- Quote by Ronald Reagan, First Inaugural Address (January 20, 1981)
  • Government is like a baby. An alimentary canal with a big appetite at one end and no sense of responsibility at the other.
    -- Quote by Ronald Reagan during his gubernatorial campaign (1965)
  • Government always finds a need for whatever money it gets.
    -- Quote by Ronald Reagan, Address to the Nation on the Fiscal Year 1983 Federal Budget (April 29, 1982)
Sep 27, 2016 - 12:38pm

AIJ - Trump advisor extraordinaire

That would have been an excellent answer (sans the payroll comment - she'll pay anybody anything to stay out of jail) and a question that Trump should have been well prepared for. His high-priced handlers failed to seize an opportunity. 

Bravo AIJ!

Sep 27, 2016 - 12:39pm

After rallying post-Fedlines,

After rallying post-Fedlines, silver has now been crushed for over $1 in just three trading days...more than 5%. Check the disparity of the move vs gold which is just down just 1% from Thursday.

Sep 27, 2016 - 12:54pm


He did get her with and I'm paraphrasing "You've been in politics fro 30 years and you want to start fixing things now?"

He played defense to her attacks and showed she's spent 200 million dollars in mostly negative ads and still ain't winning. Round 2?

She said a lot, but really didn't say anything.

BTW, why didn't I buy puts last weekangry

Sep 27, 2016 - 1:09pm

@ Benitho: B2BGold

From the last thread, the news on BTG, which is now down over 11% is that it has interests in the Phillipines which has been ordering mine closures due to environmental standards. OceanaGold has been affected but the impact on BTG is conjectural, but enough to impact the stock price.

Sep 27, 2016 - 1:20pm


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