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 .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 .50 two weeks ago and .80 last week, I guess we should expect a bottom tomorrow near .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.


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Sep 28, 2016 - 3:46pm

RE : Easy...John Butler is a friend

I don't twitter nor google, nor Farce Book. If I want to be hot listed by the N$A, I'll just use one of their 'attention' key words.

Sounded like HE said it to me. My bad. He can pull the pitchfork out now.

Sep 28, 2016 - 9:14am

Easy...John Butler is a friend

He didn't write that, the FT did! He simply retweeted it with a comment.

I see 7 hat tips. Do all of you not know how Twitter works??

Sep 28, 2016 - 2:25am

@ChaCha Mars

I'm with you on natural birth and midwives. We'll we see what I can talk her into. I as former medical professional and she as a active RN, we both have our opinions on the medical system but we both want the best for our child.

As I was sitting at the Dr office, he was mentioning all these things to stay away from, and I was holding my tongue, he went there and said "Make sure you get a flu shot". I said Doc what about thimerosal that contains dreaded mercury, his response it's in very low doses. Geeze I just shake my head. Then I said the virus mutates before they can even release the vaccine for that strain.

Look I know he's just repeating what he's be taught, I wanted to interrupt him on just about every statement, but I held my tongue for the sake of my wife. But I swear before the Almighty Himself, these people do not want to push me!!

Medical Quacks are the same a Political Hacks!

BTW they took 10 tubes of blood and tested my wife for gonorrhea, as part of routine testing. We've been married almost 3 years.

ChaCha Marstyberious
Sep 28, 2016 - 2:06am

@Tyberious: new baby

Congratulations! Every baby brings blessings to families. Hats off to you and your wife for having a child -- especially for women, it's a big leap of faith that everything will be okay. Hope your wife will keep up her normal exercise regimen -- esp. daily walks -- as it makes labor easier, faster & safer; augmenting with breathing exercises/meditation is another great easy assist. Having given birth both ways, we wholeheartedly endorse natural home birth with midwives. Blessings to you and your family!

Sep 27, 2016 - 11:54pm


from a full day of post conception stuff! New OBGYN took 2 hours, nice guy, just talks a lot. Boy he mentioned everything negative under the Sun; no raw fish due to listeria, or cooked fish due to mercury, no raw foods, no cats due to toxoplasmosis, no geckos due to salmonella (gecko poop is everywhere in Hawaii) no exercising, no alcohol, no coffee, no OTC pain meds only the most dangerous Tylenol!

And people wonder why women gain 50 lbs

Makes we wonder how the hell humans got to 7 billion! Geeze.

Then he counseled us on the fact the the State of Hawaii requires that all pregnant women get drug tested, particularly for marijuana. Look I knew it was a nanny state but what West Coast state isn't! My wife ask what me what was CPS, I said "Child Protective Services" is where they take a child from all they've known and traumatize them by putting with perfect strangers, which is none of the states business.

She said that's not right, I said yep, we'er going to have to assert all of our rights, yes!

Sep 27, 2016 - 10:59pm


Happy Birthday and Congrats on that new little one, Tyberious! You are blessed!

Ferd Torgerson
Sep 27, 2016 - 10:31pm

Tyberious, I'm serious.

Congratulations on your birthday. But, you've obviously gotten to that point in life where those aren't as special as they once were.

On the other hand, entering into parenthood is one of the most wonderful things you can possibly experience. I envy you your youth. Wish I could relive the years all over again that I've had with my wife, our two grown daughters and their children.

Enjoy it all to the fullest!


By the way, did I begin three consecutive words with the letters "y-o-u" in the second paragraph? I'm claiming a "First!" on TFMR.

Sep 27, 2016 - 9:51pm


HBD! I have always thought anyone born in Sept. (meself in cluded), was a HNY conception.
Congratz and respect. I suspect raising a child is more challenging than ever. You are a braver man than I.

Just checked, stack it is up %10.47. Hang in there Ken, soon you will have the larger problem of thinking you are ahead and you should sell, but you really do not want to.


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James CrightonAlienEyes
Sep 27, 2016 - 9:29pm


Happy Birthday Tyb - and, fantastic news about the impending new arrival !

Keep up the good work!


Sep 27, 2016 - 9:03pm


Congrats !

My best wishes to both of you !

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