The HFT algos appear to be the only traders in the gold and silver market this week ahead of Bernanke’s Jackson Hole speech tomorrow, as both metals’ daily charts are nearly identical for the past 3 days.
Silver in particular appears to be firmly under the control of the HFT bots. Three consecutive days it has spiked precisely on the COMEX open, only to be smashed back to pre-COMEX open levels several hours later. As today’s chart thus far is perfectly super-imposed on Wednesdays, look for a sell-off back to the $30.70 area around 10am-11am EST, followed by a pop, and a gradual sell-off throughout the electronic afternoon access market trading. With the algos the only ones trading the metal currently there’s not much point in discussing technicals, but it is healthy that silver is consolidating most of the week near $31 after it’s big 12% gain last week.
Gold’s chart also can be super-imposed on Wednesday’s action, albeit from a $15 lower level thanks to yesterday’s $15 10am waterfall raid. The raid was unsuccessful in smashing gold below $1650, and the level has turned from resistance into support.
The main take-away is it appears uncertainty is prevailing currently, as few traders are willing to gamble on whether The Bernank will or won’t tomorrow- leaving the TBTF’s HFT bots to gun themselves for a few pennies while everyone else waits on the sidelines for Friday.
Again, as we would be majorly surprised at an official QE3 announcement tomorrow, be prepared to STACK THE SMACK at 10am EST Friday as Bernanke speaks.
![[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)
Prepare for Bernanko speech, kill the prices..
We’re takin her down, Captain!
Dive, dive, dive….
@ 10:42- 1,130 contracts (5,560,000 bunko ounces) dumped in 1 minute for a 20 cent gouge.
Expect more pressure, especially tonight after hours. They’re going to get it back under 30 no matter how many trees must be pulped to do it.
that is all.
Conax, I think you must mean “e-trees digitally pulped”, because you know they’re not even real enough to use real paper!
01001110 01101111 00100000 01000011 00100111 01100101 01110011 01110100 00100000 01000001 01110010 01100111 01100101 01101110 01110100
Smack downs as “The Bernank” speaks is becoming a trend all its own! I’ll be ready with some worthless green paper dropped from a nondescript helicopter that blew in from the east.
There are a couple of patterns of interest in the silver chart. Notice how on the London open silver buyers tested market conditions but were turned back exactly as the current quote (today’s green) touched the red? From that point forward, the algo trading from a selling bot prevented any advancement above yesterday’s traced pattern through time for over three hours. In fact, once Hong Kong closed, removing most other action from mixing with London trading, the swings up and down match yesterday’s traced pattern through time. The fact that today’s trading managed to get past yesterday’s trace leading up to the New York open shows the point in time when humans stepped into the market to put on long positions in anticipation of a COMEX open pop. In other words, seeing the ability to get over yesterday at that point was a signal to jump aboard on the COMEX open, just as much as the inability to get over yesterday’s traced print on today’s London open was a signal that downward pressure would likely remain through much of the London session.
This stuff is weird. But these type of patterns have been repeating with unbelievable regularity. One variety is the upside cap trace pattern we see today. The converse also manifests from time to time, and did so on a number of days last week, when momentum hedge fund bots have been programed to buy the dips with volume sufficient to overcome cartel actions.
Ten years ago, it was unusual to see things like these trading patterns. Today, they happen almost daily in the precious metals. Welcome to the algo influenced world.
They won’t be able to manipulate the silver’s price forever. What happened to the 27$ per ounce of silver about one month ago? Silver went from 27$ to 30$ because of a little shortage of it. If we all keep buying silver, we will end the manipulation where the scam will be exposed.