Marshall Swing: Niagara Falls Short Covering Raid on Gold & Silver

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

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