![Live 24 hours silver chart [ Kitco Inc. ]](http://www.kitco.com/images/live/silver.gif)
After struggling to maintain $29 from the Globex open till 10pm EST, silver has gradually sold-off on the Asian market and is back below $29 at $28.80. We expect silver to test $28-50, and from a technical level, strong support does not emerge until $26, and even more so at silver’s long term uptrend line which is now near $23.
JPMorgan’s admission tonight that it has lost $2 billion (and according to Zerohedge the losses could rapidly spiral to $20 Billion) on bad derivatives trades could speed up the timing of the end game significantly.
As Eric Sprott stated so succinctly on CNBC Wednesday, the fact that gold continues to decline in the face of the escalating banking/ European debt crisis (and now you can add JPM’s derivatives trading crisis) is counter-intuitive.
We have yet to read a single coherent explanation for why gold and silver continually decline in the face of events that would seemingly be bullish for the metals. (See the Swiss Franc devaluation last November for example, when gold was raided $50 merely 5 minutes prior to the announcement.
Until gold and silver’s price movements are no longer counter-intuitive (and free market forces ensure that one day soon this WILL happen, CFTC or no CFTC), we will continue to recommend readers take advantage of their artificially lowered prices courtesy cartel manipulation, management, and price suppression.
Friday is shaping up to be another excellent opportunity to STACK THE SMACK!!!
![Live 24 hours gold chart [Kitco Inc.]](http://www.kitco.com/images/live/gold.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_silv.gif)
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/live/s_gold.gif)
silver is not following JPMORGAN, the us dollar is breakout out of its long formed inverse head and shoulders. The euro is breaking down… Also, silver formed a bearish head and shoulders broke down from it and has a falling wedge which is broke down from and backtested. Get your deal straight. its going to 26, if it breaks that, kiss it to the low 20s.
Fire sale, courtest of The Morgue. You can thank Blythe and Jamie on Monday.
Ok ILUVPMs you were right the other day. I don’t like to see it go so low but we will see. I might pull the trigger friday if it drops like that
I dunno, i’d love to see it drop a hell of a lot lower. Until we actually HIT “end game”, the lower it is, the more we can reasonably stack before SHTF. Either way, silver and gold are eventually going to rocket into outer space, so the lower it goes now, the more we accumlate for that later date. I’m in for the LOOOOOONG haul, just building a stack.
JPMorgan Chase, which emerged from the financial crisis as the nation’s biggest bank, disclosed on Thursday that it had lost more than $2 billion in trading, a surprising stumble that promises to escalate the debate over whether regulations need to rein in trading by In a hastily organized conference call with analysts on Thursday, Mr. Dimon sounded more humble, saying that “egregious mistakes” were made. “They were self-inflicted and this is not how we want to run a business.”
Yet while conceding that the bank had “egg on its face,” Mr. Dimon refused to concede that the losses necessitated a stronger regulatory framework. Although he did says that it “plays right into the hands of a whole bunch of pundits out there.”
And he defended the trading unit, saying that “the C.I.O. has done a great job for a long extended period of time.”
The troubles are expected to weigh on the bank’s broader earnings. For example, the corporate group, which includes the chief investment office, is now expected to lose $800 million in the second quarter, the company said in the filing. Previously, JPMorgan estimated that the group would report net income of about $200 million.
Shares of JPMorgan tumbled 6.7 percent in after-hours trading. Its Wall Street rivals were also down sharply.
The $2 billion loss came from a complicated trading strategy that involved derivatives, financial instruments that derive their value from the prices of securities and other assets. JPMorgan said the derivatives trades were part of a hedge, meaning they were set up to offset potential losses on the bank’s large holdings of bonds and loans. But, in the sort of nightmare situation that bankers dread, the ostensible hedge backfired, producing losses of its own.
ILUVPMs May 10, 2012 at 11:44 PM silver is not following JPMORGAN, the us dollar is breakout out of its long formed inverse head and shoulders. The euro is breaking down… Also, silver formed a bearish head and shoulders broke down from it and has a falling wedge which is broke down from and backtested. Get your deal straight. its going to 26, if it breaks that, kiss it to the low 20s.
the best way for JPM to make back their money right now is for them to extricate from the short side and ride silver up to 100.00 an ounce or more. The dollar is not strengthening. its barely over 80. It should be well above that with all the EURO BS. We might see silver go down a little but I would not be surprised to see silver fly soon. JPM lost 2 billion? They can make that up in a week if they let silver find its true value. They held the same amount of shorts last week as they did at the end of December where they could have extricated from their short position. with silver falling another 1 to 2$ since then I’m sure their short position is as low as it has been in years.
aragomoso,
I correct the above, ment 1 1/2 years not 2 1/2
Turds article yesterday was timely and a great read for those stressing over silver.
If the Max Keiser rumor, that JPM’s silver bets are collateralized by it’s stock price, is true, we well see one hell of a final sale here in the Phyzz while the hedge funds have smelled the blood.
Good posts 427. PoppaT makes some good points too. If this little drop will last another couple of weeks, I think I can get my dollar cost average back to the high twenties instead of the low thirties. If what ILUVPMS is right, I can get my DCA to the mid twenties. I will be a very happy arse country boy. I hope all of you can take advantage of these prices.
Dont hold out for a rocket that may never come. Be realistic, if you buy in the 20s you will most likely see the 30s again this year. That is a good return. I have met too many people, even dealers that believe somehow we just pop back up to the 40s sometime soon. We will be there one day but dont put an unrealistic timeline in place or you will be disappointed.
Both metals are back to the same point they were at this time yesterday but I would expect a price close to 26 in the next 10 days. That will present a good opportunity to double your investment with in a couple years if not less.
Another day with silver under pressure. It feels like a never ending story. But somewhere it will have to stop and reverse. In the weekly 10-year silver chart, you can see the RSI is at it’s lowest point in ten year,, apart from the 2008 super crash,, but it’s even almost at those levels. I believe it can even drop to $26 level, but then it would be ultimately oversold.
I donnt know much about these short positions or how they work and I don’t think JPM needs to get rid of them “so desperately”. Silver will go up after everyone is demoralized. We are not there yet. The Euro is in shambles, as as long as that happens the dollar will get stronger. Don’t be surprised to see a crazy month in the metals. I do believe a capitulation is right about the corner so get your fingers ready.
2oz Im having nothing but problems posting 1 out of 3 go through
427- what browser are you using? Anyone else having issues? AGXIIK was having issues yesterday as well, the site developer is supposed to be looking into it.
Our apologies for the inconvenience 427.
Agreed, and good point 427. I’m trying to take a very long term view tho – I’m not stacking ot make $10 or $12 per ounce and cash out next year, I’m stacking as a long term hedge against what we all see coming.
When all the fiat collapses and SHTF, it’ll be real nice to be one of the few holding physical silver, or gold, or any other actual physical commodity which will have and retain some “value”. For folks looking to get out soon for any reason, this sucks. For folks looking to lay more on the stack, it’s great.
And no matter where we each are in our journey, ANYTHING that starts to topple these bastards down from thier perches is fine by me. Sure looks like the jackals are starting to circle around JPM at this point… wonder if there’s gonna be some crazy announcements next week.
There are alot of people, countries and companies who love seeing silver drop in price. With oil still near $100 a barrel, causing extreme price pressure on manufacturing worldwide, any company working around oil prices is thrilled to see silver drop 30%, even if their typical products have only 25 cents to $1 of silver in their electronics. Stackers like India and China with their multi thousand ton purchases are going to absorb any bit of silver and gold at these and lower prices. Once purchased, much of this will not see the light of day for many years since it will form the basis of their new currencies. It is immaterial if silver is $25 an ounce and we buyers have a DCA of $30, 32 or even 35 an ounce. Unless someone needs to sell for some reason, then there is no loss. We see our silver and gold in ounces, not dollars and can buy on dips and wait for years.
As for JPM and their fate, their silver shorts could end up in the belly of another TBTF bank if the deriatives that caused their multi billion losses cannot be staunched. Greece may default again next week or at least cause more damage to the US and Euro banks, who are all tied together. How these shorts will be handled since they are still a festering piece of corruption within this and other banks will not go unnoticed if enough people make their voices heard This is the crazy election season with 100% of the House seeking reelection. Plenty of Senators will want to make hay of this criminal acitivity and the hue and cry may become so great that even those who once protected JPM and others from prosecution will seek to make political gain from JPM. Bankers are nothing if not convenient targets for a politician who wants sound bites. One thing you can say about politicians is that they will disappoint you even if you contribute to them.
The Euro crunch is going to gut the European banks in very short order. We may have only weeks or a few months before Spain falls. Everything that can be said about our TBTF banks will be moot if that happens. I smell the hubris of a Dick Fuld moment prior to the Lehman takeover in JPM. All these rats will be tap dancing in front of the Senate finance committees while their bourse burn. Stress test? What stress test?
Google crome. Explorer 9
thanks for the info 427. i’ll forward it along to the techies
Hay guys/gals I can’t reply do to to many stops in postings
Can’t remember who repeats this every now and then on KWN, but:
The problem with waiting for (even) lower prices is that they may never come, and you’ll end up buying at a higher price later. Buy some now. If it drops more, buy some more. If it doesn’t, buy some more. If you were able to predict the short term swings you’d be a billionaire through the paper market already – but you aren’t – so quit acting like you all know which way it will move next week and just buy the damn thing based on the long term trend and fundamentals. Either you’re with the manipulators – or you’re against them. You’re letting the commercials run over the longs and keep up their game by leaving the phys on the market for them to bash other with and killing the technicals (just look at what they’ve managed to do to he HUI)… and for what, $2 lower price (when you’ll probably end up paying almost as much more in premium once the price finally go lower), while JPM is left alive robbing people of their houses and ruining lives? Crash JPM – buy silver! Let’s put in the death blow now while they’re on their knees after the whale going belly up. Stop acting like the same fkn vultures you criticize.
“Bulls make money. Bears make money. Pigs get slaughtered”
I bet many of you were buyers at $40 (and maybe even thought price would slice through $50 when at 49.50), and now $10-20 dollars cheaper you are not buyers and instead passively betting on price to go lower.
Incidentally I happened to stumble upon this which make the points more civilized:
jessescrossroadscafe.blogspot.se/2012/05/net-asset-value-premiums-of-certain_09.htm
“Of course it would be nice to have a dramatic capitulative buying
opportunity as we have seen a few times recently in the past, but those
are only clear in hindsight, even to a seasoned trader.
Those who lose their positions entirely in the bull market have a terrible
time buying back in, because they want all in at once, and at the
lowest price. They are victims to their pride, for they are not
disciplined, trading not only for profit but bragging rights, in service
to a hard mistress, their own ego.
And so they miss opportunity after opportunity and turn sour, wishing
more to join them in their regrets. I hear from them at times like
this, and they are my best indicator that things are near to turning.”