Is silver being managed?Some very strange trading on the silver floor - wouold you say manipulation?
Silver, yesterday and today:
Bill, I was in a bit of a rush before so I couldn't exactly explain what was going on in Silver today. To use the words manipulate would be a very large understatement. I have an issueattributing today with the unwinding of the silver/gold spread..here's how today happened: Starting around 12:30 silver is about 9.18 on the floor. Out of nowhere somebody starts offering mini's at 8.01!!! Thats right over a point below the market??? After his offers got done some more size came in at 8.25..8.50..etc. Immediately following this the pit broke and so did Gold. If anyone were responsibly unwinding a spread they definitely wouldn't be doing it in this fashion. At the same time I was hearing rumors about the Silver ETF being rejected..obviously we know now this is false. I strongly believe this was the shorts last stand to move BOTH markets down. Gold broke right after silver...Any thoughts?? Seth
This is correct. Chris Jordon of Morgan Stanley, the most well known and successful silver trader on the floor, began to offer Comex silver a dime below some bids, which cratered the market. As mentioned yesterday, the personnel on the floor was less than usual and Jordon got his way as gold followed suit.
Unlike what we have seen in gold thus far, it was enough to trigger sizeable (versus modest gold fund selling so far) spec and black box moving average fund selling on both sessions. The quicker moving average systems were triggered yesterday … the slower ones today.
Within a 24 hour trading period silver moved 90 cents from high to low. We almost got the $1 move in a virtual single session trading period I have been looking for … except it was on the downside, not upside. The upside one is still to come. THAT I am sure of.
The silver open interest rose 367 contracts to 138,676. From an open interest standpoint silver continues to trade differently than gold.
I was asked today if was I surprised silver sold off like it has. NO! This is typical silver. What has surprised me is silver still manages to trade like it has in the past, as evidenced by this huge sell-off. It surprises me that the price managers are still able to knock silver down so far, so easily, and stay short without the trepidation we see from the gold shorts.
All the way up silver has not risen with any enthusiasm. It is as if gold was dragging the price up. The GATA camp has demonstrated over the years we have a handle on the gold market and we have been spot on time and time again. However, silver still befuddles me. Those in the silver know, whom I respect, tell us that the silver situation is far more dire for the shorts than gold is, which makes sense due to the fundamentals that are known to us. Yet, it never trades that way … thus far anyhoo. I expect that to change VERY soon and will remain alert for subtle hints of a change. I still believe that when silver does break out of its shackles, like gold has, it will be very explosive.