10 Cents in 20 minutes

I’m going to be terribly honest when I say I have no clue about short-term trading, how much more so futures. But when I see something like this I had to give my 2 cents (no pun intended).

With all the renown manipulation in the markets due to a recent surge in hedge funds, and how much more so in silver – see previous post – it would seem that this in none other than desperate short-covering at its best. In the period of about 20 minutes silver plummeted about 18 cents and then quickly reversed to cover its losses.

This is obviously not based on fundamental selling due to the fact that gold, which usually trades in tandem with silver, didn’t budge (Gold/Silver ratio briefly touched above 50). In addition, although we saw similar action yesterday to the upside of exactly the same measure, a) the current action took place during London hours while most exotic trading has often taken place in NY, and b) this occurred explicitly in the silver market (not gold) where both supply, demand and huge short position stand at unknown definite proportions.

Just paying attention to the wacky data…



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