Our friend Turd from TFMetals is looking for a massive short covering rally in gold and silver to kick off with tomorrow’s April BLS report, after the cartel has openly and blatantly capped and suppressed both metals all week. TF has a history for making great calls regarding bottoms in gold and silver.
Gold closed the month of April down for the 3rd consecutive month for the very first time in its 11 year bull market- a sign that a bottom is likely imminent if not already placed. Look for silver to make a brief dip under $30 tomorrow prior to the BLS report, where we will be a ready and willing buyer. As we have mentioned previously, extreme negative sentiment among the PM community is also indicative that a bottom is near.
Be right, and sit tight.
Here comes a stream of consciousness. Probably not a good idea but here goes.
I think this is all a big setup. However, this time, it’s an opposite setup to what we’re used to.
The action this week seems to be a coordinated effort to suck in and trap as many spec shorts as possible ahead of tomorrow.
Every headline this week that could possibly be used to raid the gold market has been utilized.
Today is the latest example but note that the dollar was declining and silver was flat.
The decline after the claims number was released was on less than 2000 contracts. The Cartel pulled their bids and allowed the WOPRs to quickly drop price through some sell stops at 1640. This process has continued to this moment as gold has now made a low near 1635.
This final drop was worked in around the London PM fix and now gold will likely trade sideways to higher the rest of the day as WOPR positions are squared before the close.
The stage is now set for a massive short squeeze tomorrow. Look, I have no idea what the BLSBS will be. How could I know? Maybe we’ll get 7.9%, 250,000 jobs and $100 down in gold. I have no idea. What I do know, however, is this: Today reeks of a final suck-in of shorts ahead of the number. Does The Cartel know what the number will be? Maybe. I can tell you this: The likelihood of them knowing ahead of time is infinitely higher than the likelihood of me knowing.
With so many weak handed longs stopped out this week, there are really none left. And now, all of the weak hands are on the short side. They look ripe to be squeezed.
A spike tomorrow, post the BLSBS, looks likely. Just as how The EE allowed the final silver spec longs to be drawn in on Feb 28 ahead of The Leap Day Beatdown, The Gold Cartel has allowed the final gold spec shorts to be drawn in today.
A spike tomorrow will cause extreme pressure on the gold shorts. A move back toward 1660 and beyond will cause them to cover. London is closed on Monday. This may cause additional shorts to cover. Would you want to be short over the weekend if NFP comes in at under 100,000?
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