COT Report: A Short Covering Depression

muppetsIn silver, we see the paper longs of the large speculators taking a nose dive along with price.
In particular, notice the absence of an apparent Short Covering Depression that usually precedes a price crash.  If this price chart were a vital signs monitor, I would say the patient is about to die but that is not the case.   The Bullion Banks merely want to reemphasize it is their game and no one else’s and to join them or die fighting them.
The 1,538 longs picked up by the commercials at about $20.48 may signify a desired bottom and not be for the purpose of making money by price going above that number but sort of a reign on the horse to prevent it from going too low as they do not want to let things get out of their control.  With the markets tanking the lack of a metals rally indicates players going to cash to ride out the storm.
In gold, we see more pronounced price lines and the numbers reveal there was indeed a Short Covering Depression by the gold Bullion Banks.  We see the incongruence of the gold and silver majors and note this past COT period was a marked attack on gold with no interest by the silver majors who just sit idly by and reap the benefits delivered by the gold brothers in crime.

 


Submitted by Marshall Swing:

Ouch!

I feel the pain of all the gold and silver commentators who predicted gold and silver were going to blast off here in the doldrums of summer during The Greatest Depression known to man.  It surely must be very difficult to put out a forecast like that then have to live with it as prices drop South Of The Border.

Great tune best sung by Frank Sinatra:  https://www.youtube.com/watch?v=9HFdJlFPFsw

Down, down, down, down Mexico way…

What a great opportunity for physical buyers!

Being right in the prediction business is not without some stress because I’m always wondering if my hearing is as good as it was last week or if I have let something get in my way to hear correctly the moans and groaning of the paper futures as they are whipped into submission by the Bullion Banks who play the paper game of manipulation at the behest of the Federal Reserve and the self indulged financial elite of this world, as Lindsey Williams is apt to call them.

Speaking of Lindsey Williams, he has not called me recently so I have little idea what he is up to these days in his own prediction business.  He is the guy who a few years ago accurately predicted or alerted the world that oil would rise to $150 a barrel, and it did in the Summer of 2008, then no sooner than it got there he said it was going to crash to $40, and it did, well it actually crashed to $32 and change but then he said it would rise to $50, and it did then hung there for a while, then he said ti would go to $70 then up, which it did.  But, it never made it back to $150 or $200.  Lindsey, what happened?  Call me and let me know.

Lindsey is an “interesting” guy to listen to and although he sounds hopelessly repetitive he is trying to drill it into people’s brains to listen and watch what is happening in the world around them.  Very few people stop to listen and listen intently.

If you listen very intently, becoming a student of economics, finance, world history and current events, you start to see patterns that are like fanfares in a symphony.  Symphonies are written very meticulously to bring the listener from one point to another with all sorts of messages in between but the part I like most are the fanfares and overtures.

I am a trained musician.  Trained long ago by great teachers from the best schools in the country.  I was a brass player of the trombone sort, bass trombone in particular and always loved the massive brass parts in various symphonic orchestrations as we sat there in the back while the strings got most of the ear of the audience but when we did have something to play we treated it like precious gold.  Here is the finest brass section in the world from the Chicago symphony playing some fantastic excerpts of the most famous trombone parts in history:  https://www.youtube.com/watch?v=xEYftmh4wz0

It is amazing that 4-5 guys can get that volume and richness of sound.  It does not take that many players with the highest of levels of skill and sheer, raw, but controlled power to dominate an orchestra when the part calls for it.

I love the Wagner parts!  Mahler Symphony 3 is very short chance to shine but magnificent!

It is no different with the dominating Bullion Banks and the outrageous raw power of the extreme short positions they hold, however, it is more than raw power they posses but they possess coordination among their “troops” that makes it impossible for the completely disjointed speculators to make a profit.

Man, I love that Lohengrin excerpt.  Short, but sweet!

Just like the Bullion banks, huh?  Okay, they are not sweet at all and I cannot imagine giving Blythe Masters a hug as the thorns around that woman might bleed me dry but the short game is their method creating everyone else’s madness.

I write every week telling you what they are up to and I see clearly their game and how it is played from the mere numbers anyone else can look at daily and weekly with the proper imagination applied.

They play paper shorts, puppets on strings from both above and below, orchestrating the right conditions for certain shorts to sell to release price higher and certain shorts to cover releasing price lower.  They do the same things with paper longs.  It is tricky business and no foll proof but since it is done with a computer algorithm less fools are in the trading trenches pulling the strings there.

The numbers in the COTs are fairly boring this week, to say the least.

In silver, we see the paper longs of the large speculators taking a nose dive along with price.

In particular, notice the absence of an apparent Short Covering Depression that usually precedes a price crash.  If this price chart were a vital signs monitor, I would say the patient is about to die but that is not the case.  The Bullion Banks merely want to reemphasize it is their game and no one else’s and to join them or die fighting them.

The 1,538 longs picked up by the commercials at about $20.48 may signify a desired bottom and not be for the purpose of making money by price going above that number but sort of a reign on the horse to prevent it from going too low as they do not want to let things get out of their control.  With the markets tanking the lack of a metals rally indicates players going to cash to ride out the storm.

In gold, we see more pronounced price lines and the numbers reveal there was indeed a Short Covering Depression by the gold Bullion Banks.  We see the incongruence of the gold and silver majors and note this past COT period was a marked attack on gold with no interest by the silver majors who just sit idly by and reap the benefits delivered by the gold brothers in crime.

Total open interest lost over 21,000 contracts.  Commercials covered almost 20,000 shorts.  Large speculators retreated from their spreads and their longs were massacred.

The disaggregated COT shows the producer merchant almost asleep while the swap dealers attacked price with a vengeance.  Those small specs I talked about in the last two weeks gave up ill gotten longs as predicted.

The numbers will be very interesting next week as the DOW losses will be shown in light of the COT numbers and how to two played together to produce each player’s desired goals.

For those that do not know, the DOW losses are the result of major profit taking being blamed on other things.  What the left hand does the right hand blames on other things…  Those who thought to see a precious metals rally, which usually happens when the DOW loses were a bit shocked to see precious metals losses.

Don’t forget, in the Great Depression of 2008 we saw the same thing as precious metals prices tanked even though fear spread around the world’s financial markets.  That was manipulation at its finest.

Reporting from the Wilderness of Southern Illinois, stay thirsty for physical metals at these  low prices, my friends!

See you next week,

Marshall

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

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

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