Rather than raid the metals as as been their MO over the past 9 months, the cartel stood back as the Fed minutes were released, and silver has popped to $30!
Silver looks extremely strong here, look for an impressive move to the upside should $30 be taken out.
![[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)
And boom goes the dynamite!
Doc, that bounce we see when today’s trade touched yesterday’s line on the kitco 72 hour chart looks like buyside algo trading. Sure, we went up overall on the back of the FOMC minutes. But the point is, we found support on yesterday’s line in advance of the FOMC minutes release pop higher and that initial support looks like bot trading.
Over the last two years, I’ve seen much more activity like this, with various patterns beyond the this example, each indicating different probable trends. I know you’ve been seeing this stuff too and have commented on it publicly. A few others have commented as well. I can’t remember a time three years ago or further on back in time when it looked like algo trading bots were being programed to act on parameters based the trading patterns shown during the same time of the previous day or two. But now, it’s happening all the time. Maybe it’s more visible given lower retail activity in the markets overall? But certainly, bot trading volume has been on the rise and one of the programing parameters seem to be this odd “do x relative to y pattern of yesterday” vis-a-vis realtime news developments.
There could be a whole new technical analysis tool developed with the study of these 72 hour pictures. But then, by the time enough people started using the tool, the bot programmers would change their systems
But it traded the exact opposite yesterday during the same hours…
I’m convinced it was the PIMCO/FOMC 1-2 combo that did it, with momentum algos tagging along.
Edit: Ok I see what you are saying with the first pop. I was looking at the Gold chart which does not have it. (But would the bots trade silver inversely to gold?). Silver has had a bit of a life of its own last week or so. One thing’s for certain – something has changed.
Widget, you’re right. One would expect correlation to some degree. But then, bots could be programed for each metal with different parameters. I haven’t made a formal study of these patterns – just have been eyeballing them for three years as I watch the kitco 72 hour chart daily for over a decade. I’ve seen enough odd things to know there’s something to my theory, but I haven’t documented it yet. I’ll make a point of doing so over the coming weeks/months. No one else has done it in a formal way other than pointing out the behavior for any given day (like Doc has noticed and commented on from time to time).
But since the subject of afterhours is discussed below, it’s worth nothing that if today’s (and this evening’s) live trade manages to stay above and bounce off of the previous 24 hour line below it, that would be another example of this 72-hour bot tracking method signaling a predominantly bullish trend remaining in place. The converse would also be true, and either would set the tone for the London AM and PM fixes, and the COMEX open, the three spots where we’d likely see the most aggressive cartel moves should the cartel act with force.
To all, note that the difference here between, say, looking at regular 5 minute charts and this 72-hour bot window theory is that there does seem to be periodic matching of previous day (or 2 day previous day) patterns, where current trade sometimes exactly follows the pattern set previously. Sometimes it might be well above or below in price, but the slope of the trading line and changes in direction match to a very high degree. That’s one of the patterns we keep seeing. And that has less to do with support or resistance concepts in play on a traditional linear 5-minute or 1-minute chart because the “technical signal” is showing up based on immediate previous day’s (or second day’s) traced pattern that a computer program is paying attention to, not the extrapolation of a trend over a week or a month or a couple of months as visible in a 5-minute chart. You following what I’m getting at, all you users of TA? Something new is going on here, and it’s the product of bot trading and it’s showing up much more in the last three years by my eye, in large part because bot trading now makes up a much higher percentage of daily volume.
Volatility is frustrating for investors, but very profitable for the market makers- i.e, JPMorgan.
In no market is this more true than silver- truly “The Devil’s Market”.
You can bet your shirt that the market makers know damn well the psychological import of the $30 level in silver, and are using this imaginary barrier as a testing ground to both fine-tune their algorithmic trading models, and shake out any remaining weak hands in the market.
Until we see a total collapse of the “Vampire Squid” banking system, silver is still very much an artificial market. Granted, we may indeed see such a collapse very soon. In the meantime, however, I would not discount the possibility of a further raid in silver, perhaps even breaching the sub-$26 level, before the next phase of this bull market begins in earnest over the next few months.
If you are a long-term value investor, however, it should matter little to you whether you buy in at $30 or $26- you’ll still be sitting pretty when silver screams past the $100 barrier and never looks back.
superiorbullion.com
This ain’t nuthin’. Wait for the QE/EURO collapse event. That collapse will trigger 10′s of trillions in derivative default, that will start a domino effect through out the dollar/euro world. That’s what QE is for. The bank bailouts when their bets turn south. And the bad thing is that when the euro collapses, there is no winning side of the derivative bet. Both party’s lose. And then the taxpayer gets the bill. Gettin’ better by the day, now. Starting to move fast.
Thank You Eric Sprott! All those who have been buying precious metals! I am sitting back watching this marvelous event! Down with the Morgue, The Vampire Squid and the rest of these corrupt bastards!
95% of everything is silver.. I am just smiling away!
Yeah, thx eric sprott SD & others. tho under water in $ terms i knew it was/is the right investment. Now just ready to SEE I AM RIGHT.
Alot of orders around 29.90-30 on Sept. They don’t want that 30 taken easily
The after hours are going to be tough on it the next couple days. Let’s hope it can hold onto an increase for the week.
That will be a very bullish signal.
Agreed, after hours trading will us whether or not the cartel has retreated to higher levels.
I bought an 1 ounce silver for 28$ when silver was at 27.40$ per ounce. It’s the first time that I’ve made a profit in terms of dollars! Today, I can sell it for 30$ without premium and still make a profit! The last when I made a profit on silver is when I bought 1 ounce of silver for 35$ and then silver hit 38$ per ounce but then it hit 36$ to 27$ per ounce. It’s all thanks to YouTube videos that I’ve started to buy silver and gold on November 2011. The YouTube people told me to buy silver and gold to protect against inflation and now here I am today making a profit for the first time!
I am no means a chart expert but the chart is smoother without the spikes from algo trading to me.
Is that this weeks catch phrase? Algo Trading? Oh Boy…. what next? Ever occur that real money is the driving force during those periods?
@ MaryB-
I’m no expert either, but I have watched the charts for quite a while now. It does look smoother, because the charts adjust to higher price volatility. The grid re-scales itself as the movements get bigger or smaller. If the price moves fast they go to a coarse price grid to chart the bigger movements. The little penny moves don’t show up as well when each mark is 50 cents instead of 10 cents, for instance.
Look at that, it’s over 30 and holding. Looking pretty strong so far.