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Cause Banging The Close Is So 2009...

Tyler Durden's picture


JPM's cornering of the copper market must be proceeding successfully, as the firm has apparently developed a sense of self-confidence that it can now move from banging the silver close to banging the commodity right at the open (even when there is no OpEx on the horizon). A straight line $10 drop in which every bid is taken out is precisely the same activity that ex-Moore trader Chris Pia got in trouble for some time ago. Of course, when HSBC and JPM do it, it is perfectly acceptable. In the meantime, China, which is now practically openly buying up gold in the open market, thanks Blythe for this $10 dip in the country's cost basis. Lastly, we continue to await news of how the $1 trillion+ in incremental debt is going to monetize itself.


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Tue, 12/07/2010 - 10:56 | 785375 Bearster
Bearster's picture

Wait, if the banks are naked *shorting* gold, then they also are providing the *bid* too?  And when they pull their own bid (presumably when they short, they sell to their own bid??) the price falls??

Tue, 12/07/2010 - 11:34 | 785521 the mad hatter
the mad hatter's picture

my friend, people like me and you provide the bid. the banksters naked sell short tranches of gold futures to wipe everyone out, start margin calls, and get everyone else to sell.

Tue, 12/07/2010 - 12:41 | 785876 malusDiaz
malusDiaz's picture

Failure To Deliver.


Easy to naked short if you never deliver, aka the 1 way transaction!

Tue, 12/07/2010 - 10:58 | 785384 SpeakerFTD
SpeakerFTD's picture


The SLV ETF just ran into massive resistance at $30.

Tue, 12/07/2010 - 11:45 | 785576 tallystick
tallystick's picture

Haha they wanna act like SLV is what matters.

Tue, 12/07/2010 - 10:59 | 785392 Kyron95131
Kyron95131's picture

yeah was watching this go down..

precious moments..

Tue, 12/07/2010 - 11:36 | 785530 the mad hatter
the mad hatter's picture

a temporary hickup on the road to currency debasement. the banksters are trying to milk every last troy ounce of value from their precious fiat currencies.

wait til asian buyers swoop in on the PM fix.

Tue, 12/07/2010 - 10:59 | 785394 VFR
VFR's picture

just waited for it to happen. So predictable. It will get whacked again in about 2 hours unless we see strong dip buying............

Tue, 12/07/2010 - 11:26 | 785483 Turd Ferguson
Turd Ferguson's picture

The Monkeys pulled this same shit yesterday. Crude rolled over and they sat tight for a few minutes and then BAMM. Hit gold and see if they can get the ball started rollin to the downside. Didn't work yesterday. Won't work today.

Feb11 gold is already $4 off its lows at 1420. Too much momentum, too strong of dip-buying by the BoS and too much POMO ($8B today). All commods will grind higher from here today. Gold will be back pushing 1430 by this afternoon.

Btw, all that really matters today would be a close above the old all-time high from 4 weeks ago today. That number to watch is $1426.

Tue, 12/07/2010 - 12:06 | 785680 Red Neck Repugnicant
Red Neck Repugnicant's picture


First of all, big bird wants her hat back.

Btw, all that really matters today would be a close above the old all-time high from 4 weeks ago today..

Secondly, that statement seems very arbitrary and indicative of someone who trades on charts, and charts only.  Since you are a chart specialist, can you tell me the difference between the oil charts of 07/08, and the gold/silver charts today?  If memory serves correct, those oil charts were useful...until they weren't.  


Tue, 12/07/2010 - 12:54 | 785934 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Big bird is a boy.

Tue, 12/07/2010 - 12:55 | 785938 Red Neck Repugnicant
Red Neck Repugnicant's picture

only in your pornos. 

Tue, 12/07/2010 - 13:58 | 786203 Turd Ferguson
Turd Ferguson's picture

RNR: I'm not sure why you think I should waste my time responding to you. 

Tue, 12/07/2010 - 14:22 | 786301 Red Neck Repugnicant
Red Neck Repugnicant's picture

because I can make you a better person (and trader). 

Tue, 12/07/2010 - 15:18 | 786468 Turd Ferguson
Turd Ferguson's picture

"Feb11 gold is already $4 off its lows at 1420. Too much momentum, too strong of dip-buying by the BoS and too much POMO ($8B today). All commods will grind higher from here today. Gold will be back pushing 1430 by this afternoon."

Well, shit, this was no good. 

Still, 1410 and 29.90 look pretty good on the tape compared to two or three weeks ago.

Tue, 12/07/2010 - 11:26 | 785493 DonutBoy
DonutBoy's picture

Yeah, so it'll go down unless it goes up.

Tue, 12/07/2010 - 11:03 | 785395 Internet Tough Guy
Internet Tough Guy's picture

Just buy the f'ing dip, like China.

Oil got whacked too. Ponzi maintenance.

Tue, 12/07/2010 - 11:12 | 785437 Ragnarok
Ragnarok's picture

Ponzi maintenance.


LOL, +1

Tue, 12/07/2010 - 12:15 | 785739 Eric The Red
Eric The Red's picture


Tue, 12/07/2010 - 11:00 | 785397 papaswamp
papaswamp's picture

Somebody must want to make a big buy and needed the price to come down. Either that or margins went up and no one was notified.

Tue, 12/07/2010 - 11:01 | 785399 VFR
VFR's picture

here we go ............!

Tue, 12/07/2010 - 11:03 | 785410 Quintus
Quintus's picture

I suspect prices will start heading upwards again very shortly after the London PM fix is complete in 15-30 minutes.

Tue, 12/07/2010 - 11:09 | 785422 Apostle of Unknown
Apostle of Unknown's picture

Still not clear on this... where are these concentrated shorts and takedowns taking place? In London or on US exchanges?

Tue, 12/07/2010 - 11:11 | 785429 Quintus
Quintus's picture

The same organisations operate in both markets.


Tue, 12/07/2010 - 11:13 | 785438 Red Neck Repugnicant
Red Neck Repugnicant's picture

Here's some clarity:

It's called, betting the devil your head.

This will end in tears. Reminds me of oil in the summer of 2007.


Tue, 12/07/2010 - 12:01 | 785653 Tell me lies
Tell me lies's picture

Not if you bought @$650. Most gold bugs bought a long time ago. Only you late to the party might end in tears.

The oil and gold analogy is quite ignorant of you.

Tue, 12/07/2010 - 13:25 | 786064 johnnymustardseed
johnnymustardseed's picture

Hey Red neck, your analogy to oil is lame. Oil is a commodity but it is not money. Gold and silver are money and always have been. Pretty sure Blackbeard didn't bury a treasure chest of oil.

Tue, 12/07/2010 - 13:41 | 786132 Red Neck Repugnicant
Red Neck Repugnicant's picture

No shit.

I wasn't referring to their utility.  

Tue, 12/07/2010 - 16:54 | 786877 Slash
Slash's picture

he may have a point.......revolving credit contracted another 8 something billion.....we're still deflating. all of the "inflation" from qe isn't leaving the banking system.....the fed, PD, treas circle jerk is still in full swing.

Tue, 12/07/2010 - 11:05 | 785414 Kaiser Sousa
Kaiser Sousa's picture

its such runs contray to the fundamentals of the metals and the fraudulent equity markets but nontheless continues...the only solice is the knowledge that it has nothing to do with the real value of the only forms of real glad when this fake ass show is very soon that is.........

Tue, 12/07/2010 - 11:29 | 785503 SheepDog-One
SheepDog-One's picture

I SURE will be glad when the fakeass show is over and I hope its soon because its making me physically ill.

Tue, 12/07/2010 - 11:45 | 785578 Kaiser Sousa
Kaiser Sousa's picture

honestly i dont get makes me want to go down to the financial district and wait for a banker to walk out and then hit him over the head with a sock full of rounds...

mother fuckers...

Tue, 12/07/2010 - 11:48 | 785592 flacon
flacon's picture

Let's go to the CFTC and give them a pound of their flesh!

Tue, 12/07/2010 - 11:53 | 785613 Kaiser Sousa
Kaiser Sousa's picture

man the CFTC is bought and paid for....Chilton knows damn well them folks aint gonna do a damn thang which is why he's doin what he's doin - running his fucking mouth...he could blow the whole operation if he just stepped aside and instead of blowing smoke up all our asses just blew the fucking whistle on the fraud and manipulation...he just wants his job...the citizens be damned.....

Tue, 12/07/2010 - 11:06 | 785419 EscapeKey
EscapeKey's picture

10-year @ 3.05, up .13 on the day.


Tue, 12/07/2010 - 11:07 | 785421 flacon
flacon's picture

Where is the CFTC? 

Tue, 12/07/2010 - 11:15 | 785423 TheGoat
TheGoat's picture

They bought physical copper to back a copper ETF. Planned release of this product (ETF) is early 2011...


Tue, 12/07/2010 - 11:14 | 785444 unum mountaineer
unum mountaineer's picture

perhaps. it is possible to have more than one motivation / reason for making such a move however. just saying.

Tue, 12/07/2010 - 11:15 | 785447 VeloSpade
VeloSpade's picture


Tue, 12/07/2010 - 11:09 | 785425 lsbumblebee
lsbumblebee's picture

Have no fear. I'm sure Bart Chilton is shaking his fist in the air at this very moment.

Tue, 12/07/2010 - 11:13 | 785440 RobotTrader
RobotTrader's picture

Gold has had a huge run already.

It is about time for a correction.

Tue, 12/07/2010 - 11:23 | 785479 flacon
flacon's picture

RobotTrader has had a huge run already. It's about time for a correction. 

Tue, 12/07/2010 - 11:28 | 785500 AbandonShip
AbandonShip's picture

haha +1

Tue, 12/07/2010 - 11:28 | 785495 Turd Ferguson
Turd Ferguson's picture

I disagree Robo.

We corrected almost 7% three weeks ago and we are just now approaching the highs of 11/9. The next sustained "correction" won't de due for another $75 or so.

Tue, 12/07/2010 - 11:40 | 785552 Spalding_Smailes
Spalding_Smailes's picture

Its getting monkeyhammered.

Tue, 12/07/2010 - 12:06 | 785675 Turd Ferguson
Turd Ferguson's picture

patience, grasshoppah

Tue, 12/07/2010 - 11:30 | 785508 SheepDog-One
SheepDog-One's picture

Imaginary equities have had a huge run already, long over due for a massive correction.

Tue, 12/07/2010 - 12:08 | 785690 Tell me lies
Tell me lies's picture

Robot, stocks are about time for a correction. I bet you gold will hold up better in a downdraft. But you don't have to worry, soon Cramer will be saying Dow 14k.

Tue, 12/07/2010 - 11:15 | 785446 Crispy
Crispy's picture

Dips make me happy.  Goes up we win, gets cheaper we win. 

I dont see the problem.

Tue, 12/07/2010 - 11:18 | 785455 VeloSpade
VeloSpade's picture

The problem is for some people having their stops taken out during this fade because they don't know where to properly place them.

Tue, 12/07/2010 - 11:27 | 785496 Crispy
Crispy's picture

GLD with 6.47 stdev over the last 90 days they best be wider.

Tue, 12/07/2010 - 12:30 | 785825 Dan_Sylveste
Dan_Sylveste's picture

Why place stops at all if you are buying to accumulate?

Tue, 12/07/2010 - 11:18 | 785453 RobotTrader
RobotTrader's picture

IRE and AIB both up 22%

Crisis is over.

Tue, 12/07/2010 - 11:46 | 785580 tallystick
tallystick's picture

Is LPS one to watch?

Tue, 12/07/2010 - 11:58 | 785639 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Next up, Port de Gaul!  Tell them what hey have won!  

Port de Gaul, you have won a bailout from the IMF!  Sign your right to establish your own bank away on the dotted line!  You will now be ruled by a global entity that functions more as a cartel than anything else!  Congradufuckinglations!

Tue, 12/07/2010 - 14:32 | 786346 FatFingered
FatFingered's picture

Yeah, okay Betty.  Good call.

Tue, 12/07/2010 - 11:20 | 785464 dickbar
dickbar's picture

 it's 3pm london-time folks... the PM fix... try thinking outside the USA ofr a while... try getting a passport?

Tue, 12/07/2010 - 11:29 | 785504 Turd Ferguson
Turd Ferguson's picture

it goes without saying


Tue, 12/07/2010 - 11:21 | 785472 unum mountaineer
unum mountaineer's picture

'memba how nervous everyone was when gold was inching up to 1400 Oct-Nov? there was definitely an awkward "was it a fart or did I shit my pants" moment. fast forward to present we're holly jolly to 1500 like "pppffffttt...fuck a bank!"

Tue, 12/07/2010 - 11:34 | 785518 flacon
flacon's picture

HOLY FREAK! $29.90!

You've got to be kidding me! I'm starting to get pissed at the "regulators" for allowing this to happen. Where is the CFTC?! 

Tue, 12/07/2010 - 11:37 | 785535 Quintus
Quintus's picture

15:36 London time and still no fix.  Doesn't normally take this long for the cartel to agree a price.....

Tue, 12/07/2010 - 11:39 | 785539 Kaiser Sousa
Kaiser Sousa's picture


from 1432. and 30.75 to 1408. and 29.83....

this is straight fucking bullshit.........

Tue, 12/07/2010 - 12:32 | 785837 Eric The Red
Eric The Red's picture

Get used to it.  This is war, not some garden party.

Tue, 12/07/2010 - 14:36 | 786357 zenith191
zenith191's picture

Whenever the PMs take a hit guys like you post about how the boogeyman unfairly pushed the price down. Grow up. It's a market - it goes up, and it goes down.

Tue, 12/07/2010 - 11:39 | 785545 flacon
flacon's picture


Tue, 12/07/2010 - 12:50 | 785924 Freebird
Freebird's picture

29.80 & support held strong

Tue, 12/07/2010 - 12:52 | 785931 Eric The Red
Eric The Red's picture

Uber Strong

Tue, 12/07/2010 - 13:17 | 786024 flacon
flacon's picture

Well now they've gone an punched a hole in it. Down to $29.75. 

Tue, 12/07/2010 - 11:42 | 785564 trav7777
trav7777's picture


Tue, 12/07/2010 - 11:45 | 785579 Spalding_Smailes
Spalding_Smailes's picture

Fear the paper bitchez !

Tue, 12/07/2010 - 11:48 | 785583 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Each daily battle is not worth sweating over, especially when the enemy has hundreds of billions of dollars they receive free from the government for the pupose of shorting and driving the price of PMs down.  

It is more surprising to me that LondonTown did not step in first and NY is going solo today (usually on a down day like today The City hand gold off after they break its price move down).  

But no worries, can't win everyday.

After the close yesterday I wrote:

I still think a marginal pullback is likely tomorrow as today's moves leave a wide range open.  I expect a cascade to $1400 overnight once LondonTown trades, and then down to $1395 when NY opens.  I think gold will trade between $1395-$1405 tomorrow.

Tue, 12/07/2010 - 12:01 | 785654 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Bounce off $1407 there, now it will go down to $1395 before settling around $1401.  

Tue, 12/07/2010 - 12:19 | 785763 Eric The Red
Eric The Red's picture

I sold a Double Eagle yesterday.  Maybe I'll go buy it back!

Tue, 12/07/2010 - 12:24 | 785787 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Better hurry!  Bouncing hard off of support.  

Tue, 12/07/2010 - 12:52 | 785930 Freebird
Freebird's picture

A later take down than expected - a little variation perhaps

Tue, 12/07/2010 - 12:56 | 785943 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Global cartel running into resistance on all fronts.  Hopefully Europe is spending their fresh pigfaces on PMs.

Tue, 12/07/2010 - 15:16 | 786464 Freebird
Freebird's picture

Hard dip buying today with spot at 1407 from a primary dealer org & surprised to see filled at 1395...lets see the close to establish perhaps some more proof.....or just a banker f.up as this was late late in the day Euroland.


Tue, 12/07/2010 - 11:47 | 785590 VFR
VFR's picture

this is brilliant! what a ride. buy , buy, buy!!!!

watch it go manic in a few minutes

Tue, 12/07/2010 - 11:49 | 785600 Phat Phreddy
Phat Phreddy's picture

So the London Fix is in.. Bounce time ?? 

Tue, 12/07/2010 - 11:50 | 785604 Oh regional Indian
Oh regional Indian's picture

Don't pay attention to micro moves now. Look at everything else. On every other axis, big moves count. Geo-political, Geological, Socio-political....

Resistance at 30. No problem. Remember 1400 was taken out before most predicted. So was $30 dollar silver.

Hold and watch.

The game is going to get vastly more interesting and hairy from here on out.


Tue, 12/07/2010 - 11:56 | 785629 VFR
VFR's picture

you're right . These are micro moves. You can cut a sword through the fear out there. We will see $100 gold moves in a day soon.

Tue, 12/07/2010 - 11:59 | 785644 Bastiat
Bastiat's picture

Yep, and they want to make sure as few specs as possible are along for that ride.

Tue, 12/07/2010 - 11:57 | 785638 Bastiat
Bastiat's picture

100% Ben's got their back!

Tue, 12/07/2010 - 12:03 | 785666 VFR
VFR's picture

well the shake out will continue to rattle the newbies. "Hold your nerve merv" is the mantra for now.

Tue, 12/07/2010 - 12:28 | 785813 Eric The Red
Eric The Red's picture

Bottom Line:  Awesome relative strength by Silver over Gold today in the face of major assault by "ponzi maintenance" ( I love that term, as posted somewhere above)!!!

Tue, 12/07/2010 - 12:40 | 785873 Silversinner
Silversinner's picture

Fix tha fix,only tricks.

Happy to be physical all in.

Do not let prices fool you,

just caculate the ounces;that's

what counts,protect your wealth

from insane gouverment and institutions.

Tue, 12/07/2010 - 12:45 | 785893 flacon
flacon's picture

Just wait until 1pm rolls around for the NY afternoon fix at 1:30pm.. ..... They'll probably take it down to $28.50 or something stupid. 

Tue, 12/07/2010 - 13:16 | 786022 Kaiser Sousa
Kaiser Sousa's picture

i mean really...this shit is so everything paper denominated n debt coupon currencies is up today holding onto gains while everything tangible and free of counterparty obligation is falling thru the floor n a world awash n debt they can never b paid????

look at how thier hammering Silver....29.77?????

fucking bullshit man............

Tue, 12/07/2010 - 13:45 | 786145 Turd Ferguson
Turd Ferguson's picture

C'mon, KS, this is not that big of a deal.

Nothing is holding onto gains today. Crude, PMs, grains, equities...all have been moving lower all day. Gold has found support between 1400-10 and silver between 29.50 and 30. That should be it. 

Shit can't go up every day. It can't and it won't. You drive yourself fucking crazy if you live and die off of every fucking tick. Be patient. Hang in there. All is well.

Tue, 12/07/2010 - 13:57 | 786198 flacon
flacon's picture


Do you think Blythe is going to try to make a London PM fix BELOW yesterday's? It sure looks that way right now. 32 minutes until we find out.

Tue, 12/07/2010 - 14:13 | 786271 frugalman
frugalman's picture

I am one of 110 followers of Turd Ferguson's excellent blog "Along the Watchtower".  I bought 10 physical ounces today, just because.. it's the day to do so.  I have some money coming available Thursday morning, so I'm welcoming a little breather here in silver.  I'm just wondering whether or not to wait for the weekend to pass, as mentioned elsewhere, China may raise rates throwing a damper on the party temporarily.

Tue, 12/07/2010 - 14:34 | 786351 Eric The Red
Eric The Red's picture

I'm with the Turd.

Tue, 12/07/2010 - 14:56 | 786407 Beanie Baby Bubble
Beanie Baby Bubble's picture

Does it seem odd that in the last 10 days or so taking a short SLV position from ~12pm EST to ~1:15EST only has been wildly profitable?


Tue, 12/07/2010 - 15:41 | 786534 Kaiser Sousa
Kaiser Sousa's picture

Turd -

i have the upmost respect for ur anger is over the fact that we do not have real, free markets that resemble n anyway global macro-econmic reality let alone market specific fundamentals...there r those who have the financial well being of themselves and their loved ones tied to the decision to accumulate real money versus fraudluent paper do dads denominated n a soon to be worthless currency...thus, when they do what they do to Gold & Silver i consider it to b a personal attack on me and my family...and guess what - that shit pisses me off as it should everyone else unplugged from the debt coupon Matrix...

peace b with u  

Tue, 12/07/2010 - 14:26 | 786318 bearnanke
bearnanke's picture

I dont get it, the whole PM deal is supposed to be an insurance agains the crazy-ness out there, right? It's fun to see it go up in fake currency value, but I bought it because the currency appears fake to me. There is no way around it in daily live, most of my money will stay money and be spend as money. Until everything collapses. Then we can say 'I told you so' and actually have stored some of our belongings into PM's. Insurance. The whole price up-down story really makes no difference in that scenario. And to be frank, for me the whole thing can stabilize again, PM can go down again and I'd have lost allot of my spare change in that deal. But that would mean that live returned back to 'normal' again and I wouldn't mind that at all. A small price to pay I'd say. I'd hate to see the whole thing come down on us, on the people I care about. PM's going up means two things: 1) the value of my PM's is going up calculated in fake currency and 2) the collapse of the whole thing, and thus all the really bad stuff coming after that, is getting closer and closer...

I'd rather choose to loose on the PM bet and thus also skip the second part..

Enjoy and good luck.


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