waterfall raidLast week I sent notes to The Doc and others indicating reversals in price direction that indicated to me the bullion banks and their minions were about to rip into spot price.  That was Friday after seeing a 30 minute 7,615 contract dump, which I call a reversal where massive positions are filtered to change the puppet strings on price, from above and below.
Those Commercials are in total controlPeriod.
The Commercials played the long game longer than the Speculators and played the short game almost 10 times shorter than those Specs.  They are masters at their deceptions.
The second 30 minute bar of this massive short covering raid now has over 7,000 contracts traded in it and it looks like Niagara Falls. 
Who could have foreseen such a massive attack on metal price?

 

Submitted by Marshall Swing:

Is USA Today just a tool the elites used to mold and shape American and world opinion and investing?

http://americasmarkets.usatoday.com/2015/05/18/dow-19334-blue-chips-with-lots-of-upside/

Of course.

People who read junk like that trust their life’s saving in their corporation’s investment funds or in mutual funds and they rush in like fools into whatever mob mentality is being pushed by the pushers…

In metals, last week I sent notes to The Doc and others indicating reversals in price direction that indicated to me the bullion banks and their minions were about to rip into spot price.  That was Friday after seeing a 30 minute 7,615 contract dump, which I call a reversal where massive positions are filtered to change the puppet strings on price, from above and below.

On Monday, the downward thrust happened with 7,691 contracts traded/sold/bought in another 30 minute episode that dropped price and allowed the Commercials to buy up significant longs at lower prices and this episode completed on Tuesday morning in the early AM and silver fell as far as $16.12

Then, as quickly as the fall, Commercials reversed the direction after buying up longs and the Speculator long buying began anew as price quickly returned to the previous level and was steadied for the upward smashing of Speculator shorts, but not just fresh shorts as the upward thrust took spot price back to heights not seen since January and early February as the numbers this coming Friday will show us mass exits of Speculator shorts as their stops were tripped by the Commercials and late to the game Speculators buying longs at higher prices.

Then the upward thrust stopped at about 17.77 and as I write this today we are seeing those late to the game longs attacked.

The Commercials are crafty and if a Speculator does not quickly take their profit and get out or catch the next wave of direction change they lose their paper profits.  But the lure of the game with its high volatility and expectation of high reward is just as enticing as Las Vegas casino tables to those who think they can beat the House.

Reviewing the numbers, we see both Producer Merchant and Swap Dealer bought longs but these numbers do not reflect the massive trades we saw on Monday during the COT Week.  What happened was at the $16.50 range Commercials dumped longs then began the downward short covering forcing Speculators to sell their longs and take fresh shorts so we do not see the full breadth of the numbers and the true size of the new Commercial longs but it obviously happened.

I expected more of a drop in spot price so I can only assume 2 things:  the Commercials found the bottom of short resistance where taking new short positions did not happen but also had in mind taking out Speculator shorts from the January/February timeframe in order to resort the price mix in contracts and strengthen their ability for future downward thrusts.

In the disaggregated Managed Money we see the evidence of Speculators buying some longs near the bottom (but many bought significant shorts) then their short stops are tripped with the upward thrust Tuesday morning before COT close, otherwise we would not see those Managed Money short coverings.  It’s a bit like the game of Clue!

Currently, silver is more than 60 cents off its high yesterday and looking to fall further before I can get these words on the page.  There are over 5,000 contracts traded in this last 30 minute bar…

We will get an incomplete view of the numbers this Friday because price went way up since last COT close and now coming down.  Lots of action is hidden in numbers like that so interpretation is the only way to understand what is really going on and what actually happened.

In gold, we see very similar price chart action but a close comparison reveals gold is slightly weakened from its position a week ago if I compare price points between silver and gold in the rise and then in the fall.  I maintain they are using silver to weaken gold further.

By the way, that 30 minute downward thrust this morning, in silver, ended with 8,331 contracts traded and they are not stopping their attack in this last segment as silver is now down to the $16.80 level…

The gold numbers, however, reveal a much different story than silver as the Large Specs end the COT Week with 6,152 longs added to their totals.  That is a surprise which means the Speculator’s have diverged as to what they believe the future holds for price.  I just hope they sold near the top but I doubt this because of the ferocity of the attack on long positions by the Commercial short covering raid today.  The Commercials do not like to give away huge profits and they know the Speculators want badly to beat them at their own game and therefore do not usually take profits when they should.  The House always wins…

We do not see the long buying in the Small Speculators so someone in Large Spec land decided to latch onto Andrew McGuire’s advice and go long quickly.  Very good decision but they probably did not sell quickly expecting a higher price for a longer time.

And now, drum roll please!

Dadadadadaddadadadadadaaddadadadda…………………

Look at the Commercial shorts!!

They ended the COT Week with 10,073 additional shorts in their totals!  Notice the total open interest rose 5,624 contracts.  My guess, and it is only a GUESS, is that they took both the long side and the short side of those bets!  My long time readers know what that means.  Those Commercials are in total control.  Period.

The Commercials played the long game longer than the Speculators and played the short game almost 10 times shorter than those Specs.  They are masters at their deceptions.

The second 30 minute bar of this massive short covering raid now has over 7,000 contracts traded in it and it looks like Niagara Falls.

Who could have foreseen such a massive attack on metal price?

In the rest of the world, things are pretty much the same and getting slowly worse:

Articles about the total cost of Bird Flu in the U.S. now well above $1 Billion and no signs of them figuring out how to stop the carnage are proliferating faster than the dead bird count.  It is truly interesting as these chicken houses took full biohazard measures to totally prevent any transmission to their flocks yet amazingly they were infected and lost everything.

Horrible farming practices have created this mess and they are not interested in farming in a natural way but insist on destroying the life of the creature for profit in mass production and controlling the consumer with lower prices, despite harmful affects to consumer health by eating those Frankenstein-like chickens.  Read here about Confined Animal Feeding Operations CAFO’s and how they are a total antithesis to what safe animal farming should be: http://articles.mercola.com/sites/articles/archive/2015/05/19/avian-flu-chicken-cafos.aspx?e_cid=20150519Z1_DNL_art_1&utm_source=dnl&utm_medium=email&utm_content=art1&utm_campaign=20150519Z1&et_cid=DM75199&et_rid=958754449

And almost unnoticed in the financial media and elsewhere is an article on cashless societies with regard to Denmark:

http://rt.com/op-edge/257553-denmark-cash-free-society/?utm_source=rss&utm_medium=rss&utm_campaign=RSS

Quote: “”Most countries these days already have an electronic money supply. Ninety percent of the currencies are actually electronic. I think it’s already there in some respect.

However it’s all about user adoption. So it seems like [in] Denmark and Sweden, there is a large percentage of the population using electronic money. So it all comes down to getting users on board, getting people familiar with using that sort of form of currency and also getting businesses on board.”

 

The ability of government to move to a total cashless society is increasing every day by leaps and bounds.

There is a near future event that will cause all governments to move to a total cashless society and far sooner than most people think.  It will be a total surprise and shock, to most, with the speed it will be implemented – just a matter of days!

My best guess is this happens in about 4 years…

More on that soon!

Now for a little humor…

http://www.euronews.com/2015/05/16/turkey-locals-terrified-as-giant-sinkhole-appears/

Quote: “Measuring 10 metres wide and 90 metres deep, the crater is thought to have formed in the space of 24 hours.”

90 meters, 295+ feet.  Notice the ground above is not wet, no heavy rains!

turkeysinkhole1

Scripture: Numbers 16:30-33

30 But if YHVH creates a new thing, and the earth opens its mouth and swallows them up with all that belongs to them, and they go down alive into the pit, then you will understand that these men have rejected YHVH.”

31 Now it came to pass, as he finished speaking all these words, that the ground split apart under them, 32 and the earth opened its mouth and swallowed them up, with their households and all the men with Korah, with all their goods. 33 So they and all those with them went down alive into the pit; the earth closed over them, and they perished from among the assembly.

I’m just sayin…..

I can hear the comments now…

Now for some ironic humor!

Everyone knows the author Stephen King.  Wikipedia says this about him: “ an American author of contemporary horror, supernatural fiction, suspense, science fiction, and fantasy. ”

Now here is another Stephen King who says this about the world economy:

Headline: “The world economy is starting to look a lot like the Titanic, HSBC chief economist warns”

http://business.financialpost.com/news/economy/the-world-economy-is-starting-to-look-a-lot-like-the-titanic-hsbc-chief-economist-warns?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+FP_TopStories+%28Financial+Post+-+Top+Stories%29

One Stephen King writes fiction, the other Stephen King writes comedy (I mean reality)…

Perhaps they are the same Stephen King and both write horror stories?

Stay thirsty for physical metal at these low prices!

Marshall

MysteryOffer_limited_72914

2015-05-19-SILVER

2015-05-19-GOLD

2015-05-19-2YEARSILVERBOTTOMS

https://www.facebook.com/marshall.swing.9

http://www.cftc.gov/dea/futures/deacmxlf.htm

http://www.cftc.gov/dea/futures/other_lf.htm

  1. The ‘so called’ PM experts… they are all just mirror images of each other.  Every week for YEARS now, they make their predictions, they are wrong, they come back with an excuse.  Excuses on satisfy the person that makes them.  Let’s do it again tomorrow, shall we?

  2. So the big boys are busy shuffling paper back and forth to manipulate the price to their liking? Tell us something we don’t know. The price of silver will remain where the criminals want it to be until the system either breaks or people stop playing their game. Why the pit traders continue to play in the totally rigged futures market is beyond me.

    • @
      Ranger
      Silver is always a buy, it does not matter what the price is as once the global collapse comes and they confiscate metal to underlie the new world currency the holders of silver and gold will be handsomely rewarded no matter if they bought at $10 in 2008 or $49 in 2011 or now.

      I do not issue sell calls.  Yet.  And probably never will.

    • @itsalalie      I see it’s your turn on the rota this month.

      Bit puzzled by the reaction here. Gold has plummeted down a mine shaft, been excoriated, been thrown off a cliff all the way from 1225 to 1208. Wow…….I am in awe. I am no particular supporter of our religious friend Marshall Swing whoever he is but didn’t he say only a few days ago that they were lining up for a take down…………which must have blown everyones mind here with the sheer surprise of it all………..not. The fact that some claim this is legal based on the fact that governments give themselves the right to do things that for the rest of us would be utterly illegal is rather a pathetic argument. While governments of various colours consider that selling “stuff” you don’t own to people who never take delivery of it constitutes a fair trade and a relevent trade to the actual asset then this intended scamming will continue while enough confidence remains in the system. The way these markets now function must be the purest definition of rigging, manipulation and interference that there is, yet still PMs retain value. While Russia, China and India and many other nations continue to view gold as a store of value then so do I and the stance of  the morally compromised and declining bankster states of the USA and UK is really of no relevence long term. The problem is that you cannot destroy the basic facts about why gold and silver are sought after by so many whatever level you place the fiat currency price. In fact the lower it goes the more dangerous it gets for the cartel because lower prices pump demand and rightly so. People are not daft. The lower it goes the less downside risk there is and the more upside potential at the same time as being cheaper insurance. If you can’t see opportunity here you should have a chat with yourself.

      As far as the gurus goes no they can’t see all the moves the money printers have up their sleeves but there is a cult of bashing them all here. Turd Ferguson gets bad mouthed but I can remember him talking about a wash out collapse coming in the gold price back in 2012/13. Human beings, once they expect something to happen are very impatient creatures and invariably expect things to occur faster than they do. The film 2001 was way out timewise but possibly not in fact and Orwells 1984 seems to be coming to fruition some 30 to 40 years later than his chosen date.

      Use the opportunity being presented here. My hope is that prices go even lower for another 2 or 3 years because I can get more for my fiat. This pathetic pat down on the 19th coupled with the associated exchange rate change that always accompanies these plays has barely tickled the price in UK pounds. This is a long term tactic to form a strong base to your finances but should not be the only way you deploy your fiat.

      People like itsalalie live in the confidence servile paper based wonderland that always goes through periodic convulsions because that too is a part of the game……..and a further serious convulsion is inevitable eventually. In the meantime enjoy life and the fact that you can because it may not last forever.

      My view.

       

    • @Marshall Swing          Well not long to wait then. That is certainly putting your neck on the line. I’d love to see the Tories carrying that can in only 4 months time in the UK having been elected on supposed economic competence. That would be hysterical. I always find it exceptionally amusing that the land of the free and bastion of supposed capitalism is as far as I know the only country in modern times to have outlawed the private ownership of gold. Anywhere else that would be called Stalinist. I do have in my mind that Argentina has at some time done something similar but so far I haven’t managed to find any detail. Do you know if any other countries in history have outlawed gold ownership through making it a criminal offence for gods sake to own metal from the earth. Still makes me laugh.

    • @
      UKTramp
      I have indeed put my neck on the line and I am OK with it.

      I know more about the timeline than anyone and I have not revealed all that but once I do many will call me “nuts” (or worse) and that is OK with me.  The timeline is solid but most will not know it once it gets here, they will think “business as usual”…

      Have you read Jonathan Cahn’s book on Shemitah yet?  No one should approach this September without having read this book…

      I do not and have not based anything I say or predict on his work (because I do not exactly share completely in his evaluation – but I do not think he is that far off, just far enough off to be off enough, if that makes any sense).  I have not yet revealed most of what I base the timing on but I will soon.  I thought I would have spilled the beans by now but certain things have kept me from doing so.

      I do not know that history you are seeking.

       

       

    • @Marshall Swing   To answer my own question, Lenin (USSR), Mussolini (Italy) and Hitler (Germany). I saw this on jessescrossroadscafe today. Not checked it. Nice company the USA potentially has.

      “But when you recall that one of the first moves by Lenin, Mussolini and Hitler was to outlaw individual ownership of gold, you begin to sense that there may be some connection between money, redeemable in gold and the rare prize known as human liberty”

      Congressman Howard Buffett

      I think Argentina has aswell

      Interesting article here:

      http://www.sovereignman.com/expat/gold-confiscation-5472/

       

  3. I can understand PM (physical) owners frustrations. If they have held since 2011 they have been absolutely pounded and all the while the stawk racket has gone on to reach new highs – so a DOUBLE whammy. Buy silver at $50, current price $17, stawk market gone from 6000 to 18,000. At some point people want a return on their investment!! Yet everyone just keep saying (for years now) that these people have to patience, etc, etc. Blah, blah, blah…..

    Everyone is predicting what is going on and what is going to happen yet no one has been right.

    When will PM holders see a return on their investment exactly??

    I think a little understanding here is in order. The deck is most definitely stacked against PM’s and this fiasco has gone on much longer than I think most would have thought it would.

    • @taketheblindersoff     Ok……well yes I am one of them but I view low prices now as the way to ameliorate some of that so that every ounce bought now seriously reduces the buy cost average of a corresponding ounce bought when prices were higher. To me that is a gift and I hope it goes lower in the short term. I save in both cash and metal and at the moment I am concentrating on cash but once I have plenty on the side I will switch back to 50/50 cash and metal each month.

      Let me ask you this. If you had been invested in the stock market from 6000 to 18000 as you describe how would you be feeling about your investments now?. Would you leave them there to increase further? Would you have confidence that these were fair valuations that would last a long period of time and be useful come your retirement? Would you want to liquidate now and move all the cash to a bank account? or some other asset? At the moment your “gain” would merely be computer entries dependent on electricity and wishful thinking and a stable stock market. If you were in that position please tell me what action would you be taking now? I am truly interested to know.

       

       

    • For those who speculated for a return on PM investment … yes you are correct, they have been pounded.

      My understanding however was that PM stacking is for insurance and some level of wealth preservation in the current risk expectations of a systemic collapse.

      How the deck is stacked depends upon what game you are playing … one of speculative risk or one of unsustainable financial systemic collapse.

    • @UKTramp  – ‘IF’ I had those gains from the stawk market over the last 5 years, I would buy land (whether a vacant piece of acreage or a vacation cottage).

      What if the government(s) outlaw/ban cash (in which gold is the ultimate cash)? Then what? It would mean that transactions would need to be done on the black market. It sure seems that’s where it’s heading….

      If the public does not see the value in PM’s, then there would be no explosion in price. And no, there are no shortages of PM’s as we have been led to believe. Are you able to go to any online PM store and buy pretty much whatever you would like at this point? The answer is yes. If/when that changes, and it says sold out for most items then it will remain business as usual.

      Don’t count on China, they are a Rothschild CB as well. There are only 2 or 3 countries remaining that do not have a RC central bank so what does that tell us? Besides, can ANY of them be trusted to report the actual amount of gold that they hold (and verify)?? I think not.

  4. @Ag patient – I see that as a cop out. Money (gold – real money) should be a store of wealth. So if someone bought in 2011 at $1900 will that same amount on oz’s get you the same items. The answer in my area is definitely no. Real estate has gone thru the roof – easily up 30% (in FRN’s), and PM’s are down approx 35% (compared to FRN’s). So how is that store of wealth and value?

    Back then there was JW, JS , Peter S, etc all saying the sky is falling and buy, buy, buy. There are shortages, the price will be $20K, 30K, 40K (pick a number). And yet, here we are over 4 years later and still hearing the same stories (from the same people no less). TIMING is also very important.

    This is why I say a little understanding is in order for those PM ‘investors’ that feel they were duped. You have to look at the other side of the coin so to speak.

    • Again … you are playing the game for speculative returns. I understand why you’re crying but not all of us are playing your game. It is not a cop out for me because I understand the game that I’m playing and it’s not a get-rich-quick game for me.

    • @taketheblindersoff           Isn’t this comment merely confirming and highlighting the bubble blowing going on in all these markets at the moment to give an outward appearance of wealth? If assets are going up that much in price it tends not to last and furthermore if you need more dollars to buy an asset over time then generally speaking, by definition the dollars are declining in purchasing power. Using artificial means to hold down the only viable competing currency is what they do to maintain appearances. When the stock market dives and property prices crash again the fiat currency that remains after the fireball will be seeking other homes. Better to buy assets low than high obviously and currently everything other than PMs is in a bubble. Could it be that “they” also want one remaining asset at a low to ride up once all the bubbles pop and they are leaving the sinking ship?

  5. @taketheblindersoff    Well yes property and land are good assets too but have drawbacks. They can be stolen by government. Property can be destroyed. They require maintainence. They are taxed by government and can be taxed further at the whim of government. They are not portable. They cannot move jurisdictions. They cannot be held in your hand. They can only be sold in entirety or in large lumps and to do so takes time and involves a lot of fees. Furthermore I suspect that both are currently at the top of a pricing cycle and the next property collapse could be more severe than the last. I mean, after all…….you cannot eat land or property can you? Pretty useless really. Assets all have different characteristics and gold and silver are very good at being money that cannot be produced without limit.

    At the end of the day the exchange value of any item can be argued over but gold and silver have floated to the top of the pool of candidates as best suited for this role for good reason, principally because of their durability, uniformity and scarcity. Salt has been used as currency in the past but for obvious reasons that really wouldn’t work now whereas the traits that make silver and gold prime contenders as good money remain to this day. If you need reliable money you need something that cannot be created without limit for free because even a two year old could work out that this is the opposite of scarcity and will not work for long even if banks hoard to themselves the only right to create it.

    Strange how so many who like to deride the value of PMs in finance also consider it normal that those countries who claim to hold them wish to lie and be secretive about how much they have. If they were worthless or of little worth why would they bother engaging in these secretive tactics regarding the alleged “barbaric relics” of gold and silver?

    You say there are 2 or 3 countries not under the Rothschild CB thumb. Which are these?……it would be interesting to know. Even Bullionvault is under the Rothschild thumb through Jacob Rothschild and Argentum Capital. It is true that these buggers get everywhere and strangely they often seem to pop up in places where there is lots of this worthless gold and silver stuff around. As for China, even if they are only using gold as a hedge it seems a rather pointless activity to be hoarding it if they anticipate it declining in value / purchasing power in comparison to the US dollar. They might aswell just hold the dollars don’t you think?

     

  6. If we get past June and July without a large FUBAR or clusterbungle, nothing will happen in August because all the banksters are on vacation.  When they get back and find an even worse situation, if they come back to the incipient messes, they are going to do dramatic things in September. It’s commonplace for September to be a month where things get dicey. October can be even worse.  Chinese is rumored to have a big announcement.  So take a vacation in August, check 6 in the first week of September.  Marshall makes a good point. While my reasoning may be different that his, causes and results might be different,  it stands to reason that 7 years after the Lehman crash without any bleeding off of pressures in the market, and we are set up for trifecta of explosions including a market crash, sovereign debt crashes with bond markets going TU and sovereign bankruptcies including Greece, Ukraine, Austria,  Puerto Rico and potentially a state or two in this country that are now rated CCC minus.

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