Another day when the highfrequency traders were a

first_imgAnother day when the high-frequency traders were active almost the entire time. The gold price traded sideways until 10:00 a.m. Hong Kong time on their Tuesday morning and, with the exception of a couple of tiny rallies at the London and N.Y. Comex opens…both of which got hammered flat immediately…it was pretty much all down hill into an early London p.m. gold fix at around 9:50 a.m. EDT in New York. Once ‘the fix was in’…the high-frequency traders went to work…and spun the price down to its Tuesday low, which came just minutes after 11:00 a.m. EDT…and minutes after London closed for the day. The subsequent [but smallish] rally lasted until the 1:30 p.m. EDT Comex close…and from there it traded sideways until the end of trading at 5:15 p.m. in New York. The high tick came in early Far East trading…and was a bit over $1,385 spot…and the low tick in New York was $1,360.10 spot. Gold closed at $1,368.30 spot…down $16.10 on the day.  Gross volume wasn’t overly heavy at around 132,000 contracts. The red trace is Tuesday’s price action. The dollar index closed on Monday afternoon in New York at 80.63…and then spent until 9:00 a.m. EDT on Tuesday morning struggling up to its high of the day, which was 80.97.  But it was all down hill from there, as the rally fell out of bed…and the index hit its nadir of 80.56 about 12:40 p.m. in New York.  The dollar index closed at 80.69…basically unchanged from either Monday’s or Friday’s close. Here’s the chart from the Sunday night open in New York.  Every rally attempt above the 81.00 mark has failed…and the dollar index has closed within 10 basis points for three days in a row.  It’s worth mentioning that the precious metals price activity has had no correlation whatsoever to the currency moves on Tuesday…not that it ever has. Without JPMorgan Chase et al riding shotgun over them 24/7…the platinum and palladium charts looked quite different.  However, don’t ever lose sight of the fact that JPMorgan is the biggest Comex short holder in both platinum and palladium as well. The gold stocks opened down…and headed lower after the London p.m. gold fix.  The bottom was basically in at gold’s low, which came a few minutes after 11:00 a.m. in New York…and the equities traded sideways into the close.  The HUI finished down 2.84%. (Click on image to enlarge) Both these charts are courtesy of JPMorgan et al…as there is nothing free market about either of them.  The MACD and RSI traces are at lows probably never seen before…and both metals are well below their respective 200-day moving averages…and are probably the most oversold in the history of either metal, certainly going back over a decade.  If anyone has weekly charts for both metals going back that far, or further, I’d love to see them…and would be happy to post them in this space. I still firmly of the belief that when the bottom does finally arrive…and the market turns up…it will do so violently, as JPMorgan et al won’t be there to go short…as they are already mega-long gold in all markets…and attempting to cut their silver loses to a bare minimum in the process.  I also believe that it will happen in such a way that no trader will be able to react to it…and you’ll either be all the way in, or all the way out. That’s certainly the way I’m playing this.  But there’s been a terrible price [both financially and emotionally] to pay for being “all in” for the last ten years.  I, and others, are still paying that price…but I’ve bet the ranch on this particular outcome. Of course, it may not turn out exactly like that, but it will be pretty close…and I’m just hoping that I’ve prepared for any eventuality. In Far East trading on their Wednesday, there was no price action worthy of the name…and the same can be said of the first couple of hours of the London trading day as well.  Volumes are very light in both gold and silver…and the dollar index continues to chop sideways just under the 81.00 mark. Since I mentioned the dollar index, I remember that Ted pointed out last week that the four largest traders still hold a bit over 80 percent of the entire short position in the U.S. dollar index…traded on the I.C.E.  Ted figures that its “da boyz”.  So whatever happens in gold and silver on their next rally, it’s obvious that the dollar is going to get hit hard at the same time…and JPMorgan et al are all set up to profit on that as well when the brown stuff hits the fan.  And as I’ve pointed out on numerous occasions, it’s only the timing of these events that remains unknown…at least to the general public, as nothing happens by accident anymore. As I hit the ‘send’ button on today’s column at 5:10 a.m. EDT…gold is unchanged from Tuesday’s close…silver is down about a dime…volumes are still very light…and the dollar index isn’t doing much. It could prove to be an interesting day for all four precious metals during the New York session…and we should be emotionally ready for anything as the trading day unfolds. See you on Thursday. It was pretty much the same chart pattern in silver, expect the low tick [$21.45 spot] came at 10:30 a.m. EDT in New York…but after that it followed the same price pattern as gold…rallying into the Comex close, before trading more or less sideways for the remainder of the day. Kitco recorded the high tick as $22.01 spot, but if the price got that high, it only lasted for a second or two before falling back, as there’s no trace of it on the New York Spot Silver [Bid] chart. Gold closed at $21.68 spot…down 16 cents from Monday.  Volume, net of the roll-overs out of the July delivery month, were rather anemic at 23,500 contracts. The red trace is Tuesday’s price action. (Click on image to enlarge) Sponsor Advertisement The silver stocks had another bad day as well, even though the silver price was down only 16 cents.  Nick Laird’s Intraday Silver Sentiment Index closed down another 2.81%. (Click on image to enlarge) The CME’s Daily Delivery Report showed that only 26 gold contracts were posted for delivery on Thursday within the Comex-approved depositories. Even though it was only a tiny amount, “all the usual suspects” were involved…and the link to yesterday’s Issuers and Stoppers Report is here. There was a withdrawal from GLD yesterday.  This time it was 48,326 troy ounces.  And as of 10:34 p.m. EDT last night, there were no reported changes in SLV. There was no sales report from the U.S. Mint. Over at the Comex-approved depositories on Monday, they reported receiving 651,006 troy ounces of silver…and shipped 234,059 troy ounces of the stuff out the door.  The link to that activity is here.  There was no reported warehouse activity in gold. I have the usual number of stories for a week day…and I hope you can find the time for the ones that are of interest to you. It’s only because JPMorgan is so smart, powerful…and adept at manipulating markets…that they have been able to amass such a large gold long and small short silver position. The truth is maybe they can add more to the gold long and reduce the silver short position with still lower manipulated prices, but we have to be in the terminal phase of this operation in terms of gauging how many more sellers can be lured in at this point. There is a limit to such engineered speculative selling. Therefore, since JPM is running out of road as to how much more gold and silver they can buy before we reach the resolution, it is no exaggeration to say that we are running out of time in which to buy cheap silver…and gold. – Silver analyst Ted Butler…15 June 2013  It was another day of low volume, but another day when the high-frequency traders were active almost the entire time…as there was no precious metal-specific news to account for the big sell-offs in both gold and silver during the Comex trading session in New York.  Ted Butler’s quote from his Saturday commentary posted above, explains it better than I can. And as I mentioned further up…and in yesterday’s column…I expect to see some price ‘action’ when the word comes down from the FOMC meeting at 2:00 p.m. EDT this afternoon…and I fully expect that it will allow “da boyz” to hit the precious metals hard once again.  I’d love to be proven wrong. One interesting thing I did see in that piece by Dr. Alex Cowie posted in the ‘Critical Reads’ section, was the weekly silver chart.  I always post the daily charts…and it’s rare event when I remember to post anything else. Not only are we at the bottom of the barrel in price terms…and in the Comex futures market as well…but it is more than obvious when one looks at the 3-year weekly charts for both metals.  As Ted said on the phone yesterday…a major low is being set. Avrupa Minerals Ltd. is a growth-oriented prospect generator focused on aggressive exploration for valuable mineral deposits in politically stable and prospective regions of Europe with a growing pipeline of prospects in Portugal, Kosovo and Germany. 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