Cartel Dumped 2x Annual US Silver Production on Market in 15 Min to Smash Silver Unde

[Serpo]

After silver exploded through $35 on this today’s COMEX open, we wrote this morning that should silver hold $35 through today’s weekly close, the metal would quickly run to $37-$37.50 early next week as a massive short squeeze developed.

The cartel understood the predicament they were in, and responded with a massive paper dump on the market to stuff price back below $35.

Between 10:35 and 10:50am EST, an astonishing 62.5 million ounces of paper silver were indiscriminately dumped on the market to induce the sell-off- nearly twice US annual silver production of 36 million ounces!!

http://www.silverdoctors.com/cartel-dumped-2x-annual-us-silver-production-on-market-in-15-min-to-smash-silver-under-35/#more-14264

[Steal]

“This week there was a big change in the (COT) swap dealers position, Eric. They added the equivalent of (roughly) 13,700 contracts worth of selling (in silver). That was a large amount of selling this week (by the swap dealers in silver). It changed their position quite quickly.”

“If you take a look at their position, and you compare it to the hedge fund’s position, they are the mirror opposites. A lot of buying among the hedge funds, and a lot of selling among the swap dealers. It’s kind of unusual to see that (rapid) of a change, when a particular group of traders is net long and they make such a big transition to the short side.



That’s what happened among the swap dealers (in silver). We know where the resistance is coming from in the silver market....

“We know there is a lot of selling by these swap dealers. But, interestingly, the big commercials, they were doing some short covering this week. I find it odd the behavior among those commercials in silver.



When you shift over to gold, you see almost a similar thing, not among the swap dealers, but among the end user category. What I mean by that is the big commercial group. What you have there, Eric, is very, very odd. I don’t recall seeing something like this over the last eleven years we’ve been in this bull market.



You had the big commercials liquidating a bunch of long positions, 27,700 or so. But then they turned around, and this is what is unusual, they covered or bought back almost the equivalent amount of short positions, 27,300 (contracts). It’s very odd to see that.



They (commercials) were basically canceling selling of the longs with buying of the shorts. The result is they were flat on the week. They had been net sellers while the gold market had been rallying, and the big selling (in gold) was coming from the swap dealers, just like it was coming from the swap dealers in silver.



Very heavy inflows coming in from the hedge fund community, from the general public, and from these other non-reportable (groups). One thing I also want to point out is the general public, their net longs, it’s the largest I’ve got on record right now.



So we definitely have a lot of people among the smaller trader category, who are playing gold from the long side. We need to be alert because of that high position (exposure) there. It doesn’t mean you are going to get a reversal, but it is time we can point that out now because it’s such a high level.



We’ll have to see if there is enough downside to push some of these guys out because I guarantee you there are some (entities) out there who would dearly love to run some downside stops to see if they could flush out the small specs. Those (small specs) are regarded as the weak hands in the market.



They are susceptible to downdrafts in gold. You might have some opportunistic stop-hunting going on by some of the larger pit locals or maybe even some of the bullion banks. But I suspect that would be a relatively short-lived phenomenon.



They would flush the stops, knock the small specs out of their positions, but I would think you would see some pretty good size buying coming in on the part of the hedge funds, who have generally been buying the dips in this market.”



The bottom line here is there are caution flags now being waved in both the gold and silver markets. For those of you who dollar cost average into physical gold and silver each month, if next week is the week you normally add to your holdings, simply continue with that discipline. Do not try to time the market.



For those of you that are looking to add to your mining share positions, just be aware that the XAU and the HUI (mining share indexes) are now up 7 straight weeks. Also, a leader in the silver space, Pan American Silver, has now traded higher for 9 straight weeks. That doesn’t mean they can’t continue higher, but at some point there will be a pull back. It may be wise to add to positions when that pull back takes place.

http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/9/22_Incredibly_Important_Developments_In_Gold_%26_S ilver.html

[Steal]

If possible, would like others opinion on above article and what it could forcast..........(those that follow the metal market close)

[beefsteak]

There are ALWAYS theoretical postulations by those playing the long or the short side, in this case silver.

When in the commodities markets, as long as the obviously massive, both sides trade is executed on the same trading day, it is a wash.

One would have to know what ELSE the big player or fund was already committed to, to understand this fully.

I suspect it was a part of a 3rd unseen spread trade, most likely in a different commodity. Those are called intramarket spreads. And it is a large trade because liquidity was a must requirement to pull it off. It most assuredly was NOT a miner hedge type of trade, by contrast.

In the "olden days" --before electronic bourses as opposed to the primarily open outcry pit trades --one would look at the nearby pit action for clues. In the case of silver, it was always the soybean pit that generate this kind of anomalous trade. Why? Because when soybean traders were locked out of their pit trading because of soybeans being locked limit up or down, the traders simply turned around, faced the center of the silver pit physically behind them, and started trading silver right then and there. The goal was to make money. They needed something to do for the duration of their 6+ hour trading day, as well as faced a new cadre of short term {silver} traders to shove around with their unused cash flow for the day. Not a helpful allegory, but illustrative, nevertheless.

So, Norcini spotted the anomally. Big deal. Other than giving himself something to talk about on Today's King World news MP3 opine after the market closed yesterday, Norcini doesn't have any more information about what the big trader/bank/fund was doing than you or I do.

On thing is for sure, it is manipulative--still doesn't tell any observer "which way, up or down."

Silver is, hands down, more famous for big money raids than any other precious metal commodity out there. SOMEBODY didn't want it to go above $35 at this time, and so they called a trick play from the line of scrimmage.

It means squat, frankly. There's not enough data points for any other musing, other than to jot it down in one's memory banks and wait for more dataset.

[Steal]

On mining the metals"Gold is not simple ....but silver is more complex"



http://www.youtube.com/watch?v=7kPWU-knyCk


http://www.youtube.com/watch?v=yGGUgC7V-vs

[Serpo]

plus 36 dollar and JPM losses expand 8 fold ,from some derivative they have on silver ,its not a happy area.

and getting past 35 is an attack in case it gets to 36 plus ,JPM will basically blow up if silver rises