Foot Prints In The Sand

Did a couple of new charts for you and found what I think are some interesting observations. For no particular reason I call them mini volume spike charts. The spikes come at strategic times in the trading sessions and 90% of the time they precipitate steep declines and/or halt advances. Check out the red and blue arrows on the charts and you will see volume spikes that result in few advances and lot’s of declines. The GATA gang has witnessed for 12 years smack downs that are most often accompanied by heavy handed volume at just the right time to stop advances and create down drafts. The selling can come in small burst or sometimes last for days if the cabal is really in a bad mood. With their deep pockets they can consume all the oxygen in the room and that's the end of that. That is the reality of the gold and silver markets as traded on COMEX.

Take a look at the first 55 minute chart and you will see 21 red down arrows and 3 blue up arrows (there is a bit of discretion on labeling). Don't think I have to put a lot of words around what is going on because it is pretty obvious. Notice that the sell side volume spikes almost always terminate advances and then with in minutes we get a chop sidewise or declining market. This is a one sided sell market yet we continue to probe new highs, now that is a bit confusing to me. Just no way you can make sense out of the way the gold and silver markets trade unless you come to the conclusion it is rigged.

In summary, I think it is safe to say that 21 volume spikes that turned the market down or flat lined it verse 3 up is troubling. Looking at other commodities I found similar volume spikes but there was no consistent bias to the sell or buy side. The volume spikes in other commodity markets were generally evenly divided between buying and selling, red and blue arrows up and down were about equal. Which you would expect to find in a freely traded market I hope.

This in my opinion is about as good a DNA profile as you can get that there is a cartel heavy hand in the gold and silver market and when they decide they do not want the price of gold and silver to go up > that's it, naked short to the moon if that is what it takes. In addition I think it is an understatement to say that they do not want to give up the high ground of $1440 gold and $38 silver, at this moment. The cartel has drawn a line in the sand, so it is going to be very interesting to see what happens on the break above these capping zones.

Source: These are Tradestation Charts display the COMEX gold session at the top and the silver session at the bottom and a volume indicator shown as an histogram. Each vertical line measures the volume for the above candle stick. I have included for your analysis a 55 34 and 03 minute chart.

Bill take a look at Friday’s trading action on the 3 minute volume spike chart below. There is just no way that anyone would trade this way for profit. Look at the first volume spike at 8:30 that whacked the price straight down, 15 points in 15 minutes, wow smack’em down GS good job. Now we all know commodities can be volatile and selling on top of selling can pick up speed but this is absolutely IMO not a bear market sinking spell. This is out and out market manipulation to induce further spontaneous combustion selling. The evidence that this is fraudulent trading lies in the subsequent recovery that took place starting around 10:30. Buying came right back in and pushed the price back up and to marginal new highs for the trading period. This immediate recovery clearly shows there were ample bids in this market to absorb the liquidation of a long seller or shorter at a 8:30 price, if he was skillful and patient and fed his offers to the market in moderation. But no the seller banged the market with an obscene number of sell orders obviously trying to intimidate the market into a further liquidation frenzy but instead trapped his selling strategy into to losses. There are no armatures on the sell side of this market as they would not last a week. Instead it looks like deep pockets that can expand net shorts to the moon if need be. We have seen these maneuvers many times and many times they worked magnificently for the price managers. My last observation is this Friday’s smack was rebuffed right back up indicating to me that dip buyers have figured the game out and are waiting in the bushes to pick up cheap bids. We are winning pal!!!

Y