Astronomical Volumes in Both Gold and Silver Yesterday

10 November 2016 — Thursday


You don’t need me to tell you what the Kitco gold chart below shows so clearly — and that’s the fact that the Managed Money trader went massively long, plus covered short positions — and JPMorgan et al were there to pick up the other side of those trades.  The commercial traders, along with the PPT, turned the tide in the dollar index and the precious metals shortly after 1 p.m. China Standard Time on their Wednesday, morning — and then JPMorgan et al went to work.  By the COMEX close they had gold down a bit on the day, although it was allowed to rally into positive territory by the 5:00 p.m. close of trading.

The high and low ticks on Wednesday were recorded by the CME Group as $1,338.30 and $1,268.10 in the December contract, which was a intraday move of about $70 buck…or more that $140 on the up/down round trip.

Gold was closed in New York yesterday at $1,278.20 spot, up only $3.10 on the day, after being up about $70 at its high tick.  Net volume was out in a parallel universe somewhere at 707,455 contracts.  Gross volume was 861,275 contracts!  Ted said that the volume we had on Tuesday night and on Wednesday in gold was equivalent to a full week’s worth of normal volume.161110gold

Here’s the 5-minute gold tick chart courtesy of Brad Robertson and, for a change, the volume in Far East trading on their Wednesday absolutely dwarfed the volume that occurred on the COMEX in New York during our Wednesday trading session.  Volume didn’t drop off to anything resembling background levels until after 13:00 Denver time yesterday afternoon, which was 3 p.m. in New York.

The vertical gray line is 10:00 p.m. Denver time, midnight in New York — and 1:00 p.m. China Standard Time [CST] the following afternoon in Shanghai—and don’t forget to add two hours for EST.  The ‘click to enlarge‘ is a must here.161110-5-minute-gold

The rally in silver was far more subdued — and I must admit that I was surprised by that fact — and even the volume associated with the election rally wasn’t anywhere near what I though it should have been, which is something that Ted certainly pointed out in his mid-week column yesterday as well.

The price made it up to the $19 spot mark by the time JPMorgan et al turned the market shortly after 1 p.m. CST — and it was pretty much all down hill from there.

As you can tell by the saw-tooth price pattern on Tuesday evening, ‘da boyz’ were taking no prisoners in this precious metal either — and by shortly minutes after 3 p.m. EDT on Wednesday afternoon, had the price back to unchanged, but they allowed it to quietly rally into the close from there.

The high and low tick in silver were reported as $19.005 and $18.275 in the December contract.

Silver finished the Wednesday session in New York at $18.455 spot, up 11 cents on the day.  At it’s peak, it was only up around 60 cents the ounce, so it wasn’t much of a rally.  Net volume was monstrous but, as Ted said, not as monstrous as one would expect, especially considering the not-of-this-earth volume in gold.  Net silver volume was ‘only’ 127,500 contracts, which is also a 1-day record high that will probably not be broken until the day this silver price management scheme breaths its last.  Gross volume was 188,265 contracts.161110silver

Here’s the 5-minute silver tick chart — and as you should be able to tell at a glance, it looks markedly different than its golden counterpart just above.  There was almost as much volume in New York as there was in Far East and early London trading — and the volume wasn’t anywhere near as much when you compare it the horrific volume levels in gold.

Like the 5-minute gold tick chart, the vertical gray line is 10:00 p.m. Denver time, midnight in New York — and 1:00 p.m. China Standard Time [CST] the following afternoon in Shanghai—and don’t forget to add two hours for EST.  The ‘click to enlarge‘ is a must here as well.161110-5-minute-silver

Platinum was also under considerable price pressure during the ‘election rally’ — and was up only $17 the ounce when JPMorgan et al began their engineered price decline.  They had it back a buck or so below unchanged shortly before 10 a.m. Zurich time — and the subsequent rally got hammered flat the moment that it touched its previous high tick.  The low came at 3 p.m. in New York in the not-so-thinly-traded after-hours market — and it rallied a bit from there, but was not allowed to break back above the $1,000 spot mark.  Platinum was closed at $999 spot — and down 3 bucks from Tuesday.161110platinum

Palladium did not participate at all in the election price shenanigans yesterday — and actually spent a lot of the Far East and morning trading in Zurich, down on the day.  It began to rally around 1:40 p.m. Zurich time, but once it got up to the $680 spot mark, the short buyers of last resort appeared — and that was that.  Palladium closed up 14 dollars on the day.161110palladium

The dollar index closed very late on Tuesday afternoon in New York at 97.95 — and after ticking up to the 98.10 mark just minutes after 8 p.m. EST, it crashed down to its 95.89 low tick just a few minutes after 1 p.m. China Standard Time on their Wednesday afternoon, which was a few minutes after midnight in New York.

You can tell from the saw-tooth 3-day U.S. dollar index chart below, that various attempts were made to arrest its fall during its 4-hour face plant.  The ‘not-so-gentle hands’ finally turned the market — and a good chunk of those losses were recouped by around 9:35 a.m. GMT in London.  It sagged for a couple of hours before rallying anew — and by the time the PPT were done, it was closed virtually on its high tick of the day at 98.62 — and up 67 basis points from where it closed on Tuesday.

The dollar index made a 479 basis point down/up move yesterday — and it would be interesting to know who might have got blown up with this sort of volatility.  And as I mentioned in the previous paragraph, here’s the 3-day chart so you can see the whole move.161110intraday-gif

And here’s the 6-month U.S. dollar index chart which I always post for entertainment purposes, as it has no real meaning.  However, it was fun to watch yesterday.  You should note that it blasted through its 50-day moving average — and then just about touched its 200-day moving average, before being rescued.161110-6-month-usd

The gold stocks gapped up by about 7 percent at the open — and then they slowly chopped lower, as ‘da boyz’ dealt with the gold price during the New York trading session.  Their respective low ticks came around 2:40 p.m. EST — and from there they rallied quietly into the close.  The HUI finished higher by 2.53 percent.161110hui

The price activity in the silver equities was somewhat different.  They didn’t pop as much at the open — and their respective high ticks came shortly after 11 a.m. in New York.  They hit their lows shortly before the COMEX close, but then began to rally quietly along with the gold shares starting at 2:40 p.m. EST.  Nick Laird’s Intraday Silver Sentiment Index closed higher by 5.00 percent.  Click to enlarge if necessary.161110silver-7

The CME Daily Delivery Report showed that 6 gold and zero silver contracts were posted for delivery within the COMEX-approved depositories on Friday.  Goldman Sachs issued all 6 out of its client account. Scotiabank and ADM picked up 3 contract each.

The CME Preliminary Report for the Wednesday trading session was three hours late — and showed a complete garbled mess when it was finally posted.  It’s obvious that the CME Group has issues — and they have a note about that on their website.  Of all days to have it!  Let’s hope they at least have their final report in readable condition later this morning

There were decent sized deposits in both GLD and SLV yesterday.  In GLD, an authorized participant added 171,626 troy ounces — and in SLV, an a.p. deposited 948,766 troy ounces.

The folks over at the Internet site updated their short position data for GLD and SLV as of the close of trading on October 31 — and this is what they had to report.  The short position in SLV declined from 11.27 million shares/troy ounces, down to 9.48 million shares/troy ounces, which is a drop of 15.9 percent.  The short position in GLD rose by 66,700 troy ounces, or 10.1 percent.

The decline in the short position in SLV is nice to see — and the increase in the short position in GLD is not material, as it was already at an historic low level to start with.

There was another sales report from the U.S. Mint, as they sold 15,000 troy ounces of gold eagles — 2,000 one-ounce 24K gold buffaloes — and 275,000 silver eagles.

There was no in/out volume in gold over at the COMEX-approved depositories on the U.S. East Coast on Tuesday.  I’m sure that the election may had something to do with that, so I’d guess that gold movement on Wednesday will make up for it.  We’ll see.

But nothing seems to slow silver down however.  Although nothing was received, a very decent 1,303,687 troy ounces was shipped out the door.  Of that amount, there was 650,255 troy ounces shipped out of HSBC USA, plus another 514,844 troy ounces out of Delaware — and 130,522 troy ounces of Canada’s Scotiabank.  A link to that action is here.

There was more activity at the COMEX-approved gold kilobar depositories in Hong Kong on their Tuesday.  They reported receiving 1,175 kilobars, but shipped out a rather large 6,826 of them.  All of the activity was at Brink’s, Inc. as per usual — and a link to that, in troy ounces, is here.

Despite the fact that there was the election yesterday, or maybe because of it, I don’t have all that many stories for you again today — and that makes your final edit all that much easier.


David Stockman: “The Jig Is Up: America’s Voters Just Fired Their Ruling Elites

America’s voters fired their ruling elites last night. After 30 years of arrogant misrule and wantonly planting the seeds of economic and financial ruin throughout Flyover America, the Wall Street/Washington establishment and its mainstream media tools have been repudiated like never before in modern history.

During the course of the past year, upwards of 70 million citizens—–59 million for Trump and 13 million for Bernie Sanders—-have voted for dramatic change. That is, for an end to pointless and failed wars and interventions abroad and a bubble-based economic policy at home. The latter showered Wall Street and the bi-coastal elites with vast financial windfalls—-even as it left 90{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of Flyover America behind, where households struggled with stagnant wages, vanishing jobs, soaring health costs, shrinking living standards and diminishing hope for the future.

The voters also said in no uncertain terms that they are fed-up with a “rigged” system that has one set of rules for establishment insiders and another for everyone else. In essence, that’s what Servergate, the Clinton Foundation pay-to-play scandals and the trove of Wikileaks DNC/Podesta hacks was all about.

Indeed, in his brawling style, the Donald in effect convinced a huge slice of the electorate that the Clintons amounted to America’s leading crime family. And while he may have exaggerated the extent of their personal crimes and misdemeanors, the latter functioned as a proxy for the beltway racketeering that has become the modus operandi of the Imperial City.

Stated differently, the people did connect the dots. There is a straight line from repeal of Glass-Steagall by the Rubin-Clinton democrats in the late 1990s through the resounding repudiations of the Clintons last night.

This commentary by David was posted in the clear on the Zero Hedge website at 8:05 p.m. EST last night — and another link to it is here.  It’s definitely worth reading.

GM job cuts the latest ramification of sluggish car sales

America’s love affair with pickup trucks and SUVs is coming at the expense of sedans — and automakers are trimming their operations in response.

General Motors on Wednesday became the latest firm to cut jobs and production amid a slowdown in car sales. The automaker is permanently laying off 2,000 workers and cutting third-shift production at assembly plants in Lordstown, Ohio, and Lansing, Michigan.

The Lordstown plant, outside of Youngstown, Ohio, builds the Chevrolet Cruze sedan. The Lansing plant assembles the Cadillac CTS and ATS, as well as the Chevrolet Camaro. Sales of those models are down between 8.3 percent and 19.3 percent this year.

Those declines are indicative of a broader industry trend. Overall, car sales have fallen more than 8 percent this year, while sales of pickups, SUVs and crossovers are up 7.7 percent, according to the research firm Autodata.

This news item was posted on the CNBC website around 2 p.m. EST on Wednesday afternoon — and it’s the first of two stories that I plucked from this morning’s edition of the King Report.  Another link to it is here.

Trump presidency better for businesses in the long run, Marc Faber says

Marc Faber, editor and publisher, The Gloom, Boom & Doom Report discusses the impact of Trump’s presidential win on global markets and asset classes.

This 7:21 minute video interview showed up on the Internet site at 7:10 a.m. EST on Wednesday morning — and it comes to us courtesy of Ken Hurt.

Jim Grant: Background Music For Change

Jim Grant, of Grant’s Interest Rate Observer fame, talks about the need to bring change to the way government operates.

This 2:56 minute CNBC video interview, which is a must watch in my opinion, showed up on the Internet site at 12:05 p.m. on Tuesday EST — and I thank Jim Gullo for pointing it out.  Although it occurred before the election, what Jim has to say is just as relevant afterwards.

First “Trump 10-Year” Auction Is a Near Debacle: Tail Spikes, Bid to Cover Tumbles

Well, if Trump really wants to blow out yields, he got a head start two months before he was even sworn in when moments ago the market threw up all over today’s $23 billion in 10-Year paper, the first benchmark auction to price above 2{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} since January, and not only that but do so with one of the biggest “tails” on record, pricing at 2.02{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, 1.6bps wide of the When Issued 2.004{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}. The internals were even more, ahem, deplorable, with the Bid to Cover tumbling from 2.53 in October to 2.22, the lowest since March 2009, as Indirects plunged from 62.7{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} to only 52.5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, the lowest since January 2015, and with Directs taking down just 8.3{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e}, Dealers were stuck with 39.2{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of the auction.

Overall, this was about as ugly an auction as we have seen in years, and if this is indicative of how the market will treat the Trump administration, we may find ourselves in an entirely new regime: one where the bond vigilantes take on not the Fed, but the president. Where have we seen that? Oh yes, in Italy in 2011. That particular episode resulted in the ouster of Berlusconi.

This tiny 1-chart Zero Hedge article was posted on their Internet site at 1:12 p.m. yesterday afternoon EST — and the above two paragraphs are all there is to it…plus the chart, of course.  I thank Richard Saler for sending it — and another link to this story is here.

Trumpquake — Pepe Escobar

What has just happened in the “indispensable nation” is nothing less than a geopolitical 9/11.

With, of course, a major twist. The suicide bomber sneaked out of the successful attack – which was meant to decimate virtually the whole War Party/neocon-neoliberalcon/Wall Street/think tank/corporate media establishment.

And then, out of left field, when no one saw him coming, he reappeared, trumping it all.

Internal geopolitics was key – as in the Trump campaign rust belt strategy mastering geography, demography and the rudiments of class struggle to effectively shatter the much-vaunted Democrat blue wall.

For all the requiems — “American tragedy” downwards – there won’t be armed revolution in the U.S. There won’t be civil war. The “deplorables” may have given a collective finger to the liquid modernity elites – but there will be no vengeful victory laps.

And geopolitically – and that’s what matters to the whole world — there will be no Warmonger-in-Chief.

This commentary/opinion piece by Pepe put in an appearance on their Internet site at 5:49 p.m. Moscow time on their Wednesday afternoon, which was 9:49 a.m. in Washington — EDT plus 8 hours.  Another link to it is here — and I thank Larry Galearis for sharing it with us.

Clinton Foundation: “Robin Hood in Reverse” — John Batchelor interviews Charles Ortel

“…Doug Band, founder of global strategies company Teneo and Bill Clinton’s personal assistant since the 1990s, wrote the Jan. 4, 2012, e-mail to future Hillary Clinton presidential campaign chair John Podesta and two other Clinton aides after receiving word that Chelsea had told “one of the [President] bush 43 kids” and others about “an internal investigation of money within the foundation.” Band wrote such chatter was “not smart.”

The investigation into her getting paid for campaigning, using foundation resources for her wedding and life for a decade, taxes on money from her parents….,” Band wrote. “I hope that you will speak to her and end this[.] Once we go down this road….

The FBI reportedly is looking into The Clinton Foundation, although the extent and focus of the investigation is unclear. Hillary Clinton, the Democratic presidential nominee, had previously said some of the “personal” e-mails she deleted from her secret, homebrew server – the subject of another FBI probe – were related to Chelsea’s wedding.

Band’s e-mail, which was revealed after Podesta’s G-mail account was hacked and subsequently uploaded to WikiLeaks, came at a time of turmoil and upheaval within The Clinton Foundation. Aside from the internal audit, previous e-mails show a prolonged effort to untangle Teneo from the Foundation. When Band launched the company in summer 2011, he was still employed by the Foundation and Bill Clinton was listed as a Teneo adviser….”

You couldn’t make this stuff up!  This 20:45 minute audio interview was posted on the Internet site on Tuesday sometime — and it’s well worth your time, if you have the interest, that is.  It’s the second contribution in a row from Larry Galearis — and another link to it is here.

Democrats “Extremely Disappointed” as Chaffetz Confirms “Duty” to Continue Clinton Probe

Democrats appear to have thought that since Hillary Clinton lost, Republican lawmakers would put her e-mail indiscretions to rest, but today, as The Washington Post reports, a top House Republican said Wednesday he will continue to investigate Hillary Clinton’s use of a private e-mail server as secretary of state.

Jason Chaffetz, the Utah congressman finishing his first term leading the powerful House Oversight and Government Reform Committee, made it clear the partisan bitterness that marked the presidential campaign is not going to go away.

It would be totally remiss of us to dismiss [the e-mail investigation] because she’s not going to be president,” Chaffetz said of the defeated Democratic nominee.

I still have a duty and obligation to get to the truth about one of the largest breaches of security at the State Department,” he said. “Tens of thousands of documents still have not been turned over to Congress.”

This is another Zero Hedge article.  This one showed up on their website at 6:50 p.m. on Wednesday evening EDT — and another link to it is here.

After Trump victory, France braces for possible surprise in 2017

After Donald Trump’s shock win in the United States, French pollsters and pundits are now warning that surprises should not be ruled out in France’s presidential election next year because of an untested primary system and a fragmented political field.

With poll after poll showing far-right leader Marine Le Pen emerging as one of the top two candidates in the first round but losing the second-round run-off, commentators have presented ex-prime minister Alain Juppe’s victory as almost guaranteed.

Incumbent Francois Hollande, who has yet to confirm his candidacy, is the most unpopular president in history, polls show no other leftist candidate has much of a chance, and former conservative leader Nicolas Sarkozy is also widely unpopular.

That would leave the way to the Elysee Palace wide open for Juppe, a moderate conservative seen as a safe pair of hands. Or so the story goes in the French media.

This Reuters article, filed from Paris, appeared on their Internet site at 9:17 a.m. GMT on Wednesday morning, which was 4:17 a.m. in New York — EST plus 5 hours.  I plucked this from today’s edition of the King Report — and another link to it is here.

Italy’s Next in the Cross-hairs for Anti-Establishment Wave

The anti-establishment whirlwind is headed for Italy now that it has sent Donald Trump to the White House.

Italian government bonds slid in the wake of Trump’s stunning victory, reflecting worries that Prime Minister Matteo Renzi will lose a referendum on political reform, scheduled for Dec. 4.

If protest votes are ‘a thing,’ then the next opportunity for the electorate to express how fed up they are with conventional politics” is for the Italians, Kit Juckes, a London-based strategist at Societe Generale SA, wrote in a note to clients.

Italy’s 10-year bond yield rose one basis point, or 0.01 percentage point, to 1.74 percent at 4 p.m. in London, after touching 1.79 percent, the highest since June 24. The 1.25 percent security due in December 2026 dropped 0.125, or €1.25 per €1,000 ($1,095) face amount, to 95.605.

Italian 10-year yields climbed earlier to the highest level since the day Britain’s decision to leave the E.U. became known. While euro-area securities pared some of their initial knee-jerk reactions to the news of Trump’s victory, the spread between Italian and German 10-year yields touched the widest since that day.

This Bloomberg story appeared on their Internet site at 11:53 p.m. Denver time on Tuesday evening — and was updated about nine hours later.  It came from Zero Hedge courtesy of Brad Robertson — and another link to it is here.

Feeling the oil crunch: Saudi Arabia cancels $266bn in projects

Saudi Arabia’s governing economic body called the Council of Economic and Development Affairs (CEDA) has cancelled $266.7 billion in projects, the Saudi Press Agency said, and announced it would be settling much-delayed private-sector payments by year end.

The projects that have been canceled are the ones that are not expected to accelerate the kingdom’s growth or improve the living standards for its people.

The cancellations were first considered in September, but at the time, it was noted that only $20 billion in projects would be considered to put on the chopping block.

The size of the delayed payments—mainly due to severe hits to the kingdom’s oil revenue—remains undisclosed, but it includes delayed payments to construction firms, medical establishments, and foreign consultants. One analyst, according to Reuters, estimated that the amount still owing just to construction firms was US$21 billion.

This news item was posted on the Internet site at 11:30 a.m. Moscow time on Wednesday morning, which was 3:30 a.m. in Washington — and appears to be based on a Reuters article.  I thank Swedish reader Patrik Ekdahl for bringing it to our attention — and another link to it is here.

Chris Martenson Interviews Silver Analyst Ted Butler

Ted and Chris hooked up about a week ago for this audio interview.  It runs for 60 minutes — and it certainly falls into the absolute must listen category.


Here are two more shots from Bob Anthony.  And as incongruous as it may sound, these are African penguins a.k.a. jackass penguin/black-footed penguin. — and are permanent inhabitants of the beaches around the suburbs of Cape Town in South Africa.  The Click to Enlarge feature helps here.161110image006



There should be no shadow of doubt in anyone’s mind that if the powers-that-be hadn’t stepped into the financial markets starting at 8 p.m. EDT on Wednesday evening, my prediction of “a great smoking hole where the world’s economic, financial and monetary system once was” would have come to fruition by the time the markets closed in New York yesterday.

That, dear reader, is how precarious the current situation is.  The systemic risk is off the charts — and ‘da boyz’ know it.  So do you.  There were multiple black swans running amuck in the markets on Tuesday night — and part of Wednesday.  The vote for Trump as president-elect may have been the catalyst for all that, but not even close to the real reason.

But yesterday’s heroic save by JPMorgan et al only delays the inevitable.  However, the firepower that the Deep State brought to bear was awesome to watch — and some indication of that comes from the shocking volumes in COMEX futures market in all four precious metals yesterday.

Here are their respective 6-month charts and, once again, I’ve included the copper chart, as the Managed Money traders have gone wild for the 13th trading day in a row.161110-6-month-gold


And as I type this paragraph, the London open is less than ten minutes away — and I see that the gold price has been wandering mostly higher in Far East trading on their Thursday — and is currently up $5.80 an ounce.  The rally in silver has been a bit more impressive — and it’s up 23 cents.  Platinum tried to rally, but got sold down below unchanged in mid-morning trading in the Far East — and has rallied to down only a dollar as I write this.  Palladium hasn’t been doing much, although it has popped a bit in the last few minutes — and is up 5 bucks the ounce.

Net HFT gold volume is already very heavy at just under 53,000 contracts — and that number in silver is very heavy as well, at just under 13,000 contracts.  The dollar index has been trending quietly lower during Far East trading — and it’s down 14 basis points as London opens.

Just a note about copper here.  Silver analyst Ted Butler was talking about it in his Saturday column — and I must admit that I wasn’t surprised to see him mention it again in his mid-week column yesterday as well.

I would estimate, over the 12 day trading rally, upwards of 80,000 net COMEX copper contracts have been purchased by the managed money traders. This is the equivalent of one million tons of copper, 20 days of world copper production — and 5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of annual production.

It would be impossible for 5{f02ffe5e8b39fd7974c2720d01ccf381ddc9ebb4164215842085b3c57e4f642e} of the world production or consumption of any important commodity to be bought or sold by one narrow class of trader for that amount not to greatly impact the price. Therefore, it’s beyond debate as to what just caused copper to explode in price – verifiable managed money buying.  And if you are aware of any legitimate alternative explanation, I would be most grateful and downright shocked to hear of it.

And that reason, dear reader, is why the 6-month copper chart looks the way it does.  Now we wait until JPMorgan et al have all the mice/Managed Money traders in the trap they think they’re going to get — and at that juncture they’ll pull their usual engineered price decline routine…ringing the cash register once again for fun, profit — and price management purposes in the process.

Which, according to Ted, is what ‘da boyz’ did in the gold, silver, platinum — and probably the dollar index as well on Tuesday night and Wednesday in New York.  Except they did it in less that 24 hours — “day trading” them, as Ted so accurately put it.

In yesterday’s price action, gold blasted through both its 50 and 200-day moving averages to the upside — and then to the downside, all within a 24-hour time period.  This, of course, was all Managed Money and the Commercial traders dancing the usual tango…just like copper mentioned above.  In silver, it was only the 50-day moving average that was taken out both to the upside and downside on Wednesday.

The question that has to be asked is whether all the longs purchased [and shorts positions covered] by the Managed Money traders that caused gold and silver [plus platinum] prices to rise on Tuesday evening, were taken off as JPMorgan et al engineered the price decline from its 1 p.m. China Standard Time high tick, until the close of COMEX trading on Wednesday.

The other thing that should be mentioned is that under cover of record high volumes in the COMEX futures market, was JPMorgan using that opportunity to cover more of its short position in silver?  They did during the last reporting week — and Ted suspects, based on changes in daily open interest, that they might have been doing the same thing this reporting week as well.  If that’s the case, he’ll see it in tomorrow’s COT Report.

But of course what may or may not have happened under the cover of yesterday’s high volume, won’t be known until next Friday’s COT Report on November 18.  And until next Tuesday’s COMEX cut-off for that report, I shan’t say a word about what it may, or may not, contain.  I might have had something to say if the CME had a readable Preliminary Report for the Wednesday trading session, but they didn’t — and I checked again just before I hit the ‘publish’ button on today’s column.

And as I post today’s effort on the website at 4:00 a.m. EST this morning, I see that that there has certainly been some price activity in the first hour of trading in both London and Zurich.  Gold is now up $11.40 an ounce — and silver is higher by a whopping 38 cents, two percent!  Platinum is now up 3 bucks — and palladium is up 10.

Net HFT gold volume is much higher as well at just under 65,000 contracts — and in silver, that number is just over 18,000 contracts.  These are very chunky volumes, so it’s obvious that these rallies, like the big ones yesterday, are not going unopposed.  Based on that, I doubt very much that they will be allowed to continue for much longer, although I’d love to be proven spectacularly wrong about that.

The dollar index hasn’t done much in the last hour — and is still down the same 16 basis points it was when I reported on it last.

So where to from here?  Good question.  The configuration in the COMEX futures market is still as ugly as sin in both gold and silver — and Wednesday’s price/volume action may have made it much worse, although there’s no way of telling that at the moment, but the data in Wednesday’s Preliminary Report, which is still M.I.A. as of 3:56 a.m. EDT, would certainly help.  But just based on what I can see — and if forced to bet the usual ten bucks, I’d bet on ‘worse’ hands down.

But someday these COT number won’t matter any more, but they certainly did yesterday.  It’s obvious that, for the moment, JPMorgan et al appear to have things well in hand.

And on that cheery note, I’ll sign off for the day — and I’ll see you here tomorrow.


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