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More On The Silver Dive: "Massive Sell Orders" Coupled With Bolivian Nationalization Halt Combine For Perfect Weak Hand Shakeout Storm
Two key factors that appear to be contributing to the rapid move in overnight silver (and subsequent jump to pare half its losses) is i) the fact that Bolivia, despite being in a cash crunch has for the time being yielded to miner demands and has put its nationalization plans (as discussed previously here) on hold, and ii) there has been a dramatic bout of selling coming out of nowhere, despite the PM complex having opened very well bid earlier on, in what appears a coordinate effort to nuke silver exclusively.
From the WSJ: "Opposition from Bolivia's independently organized miners stopped President Evo Morales from implementing plans to boost state control over the country's mines Sunday, according to leading officials who were advocating takeovers of the country's vast mineral wealth. Mr. Morales has generally used May 1 labor day festivities to highlight his socialist agenda of reverting the country's energy and mineral resources to state ownership. On previous labor days, he announced nationalizations of Bolivia's strategic hydrocarbon reserves and the electric power grid, with mass rallies and military displays. This year, however, anticipated takeovers of the mining sector failed to materialize." None of this however, is news, as Coeur d'Alene and, of course, Sumitomo, the two biggest silver miners in the politically embroiled country already were assured their facilities would not be touched so we fail to see how this non-news is in any way validating of a nearly 20% move. Elsewhere, Bloomberg notes what appears to have been a massive coordinate attack on silver starting just before 6:30 pm Eastern.
From Bloomberg:
"We opened up this morning n New Zealand exceptionally well bid across the board," Jonathan Barratt, managing director at Commodity Broking Services Pty, said in a phone interview from Sydney today. "We got a high in gold and then we got massive sell orders in the spot market and the price fell through. When futures opened the market fell again."
Looks like the old sell into low volume trick to flush the stops and kill the weak hands has worked again. Throw in last week's two CME margin hikes and Friday night's margin bonanza by MF Global, and one had a perfect storm set up for another wipe out in silver to start the week.
In the meantime, silver promptly managed to retrace over 50% of the move shortly after the dump. At this point whatever holders remain following last week's margin action and this evening's fine example of shock and awe will likely need far more energy and capital to be shaken out by the same entities whose primary goal is to prevent the surge in silver and ongoing capital-sapping collateral calls. Since none of the actual fundamentals before the long-term trajectory in silver (and gold) have changed, this appears like a rather attractive entry point.
Lastly, one should recall that silver had a mini 10% correction last week and not only promptly recovered but nearly passed the $50 level shortly thereafter. This time will not be any different.
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Finger on the silver buy button Sunday nights, bitchezzz.
You my friend are a real fucktard last Sunday night Ag rose $2. So what was the Morgue doing then.
This Morgue short story does not make any sense do you really think the Morgue held on to the Bear Sterns shorts all this time. I doubt it I believe they know how to put a stop on their positions.
Also, here's a real schocker,the Morgue has enough money to make a small market like Ag move in it's favor.
Gasp! So, you're claiming that the JP Morgue doesn't always manipulate the Ag market but has the capability to do so?
I AM SHOCKED! Why do you not report them to the CFTC?
Ag is a huge market not a small one. "it's not suppose to move in the first place" as they say. "lot's of barking with no orders" kind of thing. i do find the "short silver/long copper" rumor interesting. should copper move higher i'd say "there's a data point."
Yeah, the socialist countries Norway, Sweden and Denmark are such disasters...you fucking moron.
Norway, Sweden, and Denmark are near homogeneous societies. Nearly all citizens share similiar color and religion. It's easier to manage a socialist state when nearly everyone is from the same tribe.
The USA's demographics are far from those of Scandinavia. Too many tribes that don't want to share with one another.
Idiot. They are NOT socialist countries. They are SERFDOMS.
They keep the sickest feudal vestige alive: ROYAL FAMILIES.
The "citizens" are SERFS.
Black swan meets black swan. Silvers butterflies flapping in far away places. Nothing is exempt from a black swan event
Except a Black Swan. Think . . . thiiinkkk . . . aaannndd your head just exploded. (No need to thank me other ZHers.)
I have a buy order at 38. Rose too far too fast...even Schiff and Fleckenstein say (or imply) they would not buy silver right now.
GL!
LOL
This sharp dive out of nowhere does not look like something to me, that has anything to do with current news. I even find it implausible, that many independent agents were involved in this. If you ask me, this was mainly a massive sell of a single agent, or multiple agents doing a coordinated selloff.
Why? Desperate to buy for delivery? But who's selling? Apmex was begging to buy a few days ago at $51.
When the final blowout of the pimple arrives it'll be exactly like this and the lemmings won't believe it then either.
What's this all about??
(Reuters) - President Barack Obama will make a public statement at 10:30 p.m. EDT on Sunday, a White House official said.
The official did not say what the statement would be about.
Resignation?
That's a lot of hopium...
Well, that would explain the drop in silver.
Fourth war starts in Syria. One for each of the Horseman of the Apocalypse.
Now that worries me more than the drop in silver!
Especially if there's a connection...
Hopefully something on Sunday Night Baseball has him fretting... Or maybe he's announcing an early morning T-Time?
That was a closely called strike three. Maybe the Philly Fanatic has a direct line to the WH.
Watching the Indians? Very exciting so far.
And if so, it could get monkey hammered after he's done speaking ...
Oh don't worry. I mean - what could it be, Auricle? Hm? I mean almost nothing happened in the last few months. He will probably say something about those Alien Invasion ships that landed yesterday...
Bin Laden is Dead!!??
If the statement is regarding bad economic news (or something else dollar-negative), it would make sense that TPTB would try to take down silver and gold just before the speech to prevent a true moon-shot.
Hmmmmm...
Watch it live here: http://www.whitehouse.gov/live/president-obama-delivers-statement
nationalizing the oil companies....
and in a footnote "we're back on a gold standard." 1 oz of gold=30,000 US. but "you'll have to read the statement to know."
Obama is going to announce that Bin Laden is dead.
LOL.
Thank you ZH... I know an entry point when I see one. Silver was already back up to $46.64 before I could pull the trigger on more physical. Gotta love bulliondirect who cleared my order after hours. Pricing will probably have corrected by morning. BTFD!
"Silver's near term bounce carried
higher than we anticipated, pushing to $49.49 yesterday, but, so far, Monday's key $49.91 high remains
intact. As long as this high is not exceeded odds remain strong that silver is now starting a significant leg
down."-Friday's STU. www.elliotwave.com
Hasn't Prechter been calling for a downleg since silver was at 12? The guy can't admit he's wrong.
That was obviously a coordinated attack. A $6 move in 20 minutes? LOL, that certainly wasn't sellers trying to get out at good prices.
If people wanted out so bad, they would have last week when Apmex offering $51 and people laughed. Whats changed since Friday?
please
when you buy silver you buy the real thing/
when you sell silver you walk on down to the coin shop and sell.
when you buy and sell paper calling it silver
your a dense fat head lol /
trying to manage a fat finger trade that is taxed at 35% short term ,
so much for the silly game of lose your shirt while claiming a profit ,
those who bought silver the real at even 20 have a double . and i bet those that trade this game of future paper . are loosing more than the gain ,,
but love to gamble . and are the part of the 90% who lose in the trading ,, trying to go against the JPM of the world .. who are so up side down in silver that they look like a flat pancake ,
hard to take people seriously when they can't spell 'you're'.
And when the commodities correct your physical wont be worth more than the paper. Gold and silver are small compared to the fiat market. If your an end of the worlder, go buy a farm and become Amish so you have a neigher to help you raise a barn and food to eat cause if fiats crash that bad, well its not gonna be pretty when food items are based on a just in time delivery system to save costs.
when the commodities correct ------>
your physical wont be worth more than (the) paper
Is it Raining gemstones?
Yeah, the Bolivia issue was a non-issue. I read about 10 days ago that the miners union told the government they didn't want any takeover, and the government responses was "if you don't want it, then we won't do it".
This is just the usual JPM paper-silver smashdown via silver futures and/or options. However, this time their explicit goal is to give them breathing room between the price of silver and the all-time record price. They very much want to prevent silver from closing at an all-time high price ($51). But this and every dip will cause a huge "buy on the dip" crowd to buy. And increasingly, they're buying physical silver, which will eventually blow the lid off this scam.
They're really fighting to keep it from popping back over $45!
http://jessescrossroadscafe.blogspot.com/2011/05/open-letter-from-ted-bu...
Don't know if some @$$ faces are doing the same on COMEX.
People love to blame the selling on something. Get real Silver is in a blow off top! this is what happens, weak hands get shaken out.
Dont barf but going long the US Dollar. This guy has some great points on how crowded the long commodity/ short US dollar trade is
http://etfusdollar.com/
LOL
Go look at some historical charts of anything in a blow off top.
Takes 2 days at most, big blow off run, then massive selling to a negative close, subsequently confirmed on big volume down and down big the next day.
Blow off tops do not take a week to churn, then suddenly fall in a paper(hah!) thin holiday market.
Maybe NASA has just discovered a 50 mile wide meteor made of .999 silver hurtling straight at earth and the exact impact site is JPM COMEX vault?
Goldman sells futures in that, don't they?
I've got a question. I want to set up orders to buy silver at various lower prices, then just sit back and wait for them to be filled... whenever that happens.
However, my previous efforts are almost always frustrated because so many of the smashdowns (including this beauty) happen when US markets are closed. So my question is, how can I do this? What silver vehicles (physical, options, futures, ETFs, etc) can be done this way (around the clock)?
Seems like all the "buy on smashdowns" are going to the asians these days. I'm happy for them, but not pleased that I can't take advantage myself. What can I do?
Camp out on ZH, buy from APMEX when silver gets hit
That's not buying silver, that's buying paper. Only a fool buys fiat paper to secure another fiat paper against default.
Yeah, yeah, yeah. You're speaking to the choir. I have had 98% to 100% of my assets in PHYSICAL gold and silver for about 3 years now. How many others have that level of committment in physical?
So I don't think it is unreasonable for me to hold 2% or so in some leveraged vehicle, especially when only invested after a downward spike. Are you 98% ~ 100% in physical?
46.7 is the key tech break (not tonight.) Below that on regular/heavy volume, and we enter neutral/down territory.
By Michael A. Memoli, Washington Bureau
May 1, 2011, 7:01 p.m.
President Obama will address the nation at 10:30 p.m. Eastern time Sunday, the White House said.The announcement was abrupt, coming after the White House had declared a so-called lid, meaning no other news would be coming for the remainder of the day.
No word was given as to what the president would be addressing.
I believe he'll just be saying that he believes in a strong dollar so sell all your gold and silver 1st thing tomorrow morning. And if you have any further questions either call my wife or Blythe at JPM.
Maybe he broke 100 today and he wants us all to know about it.
bilary has been taped, in her office, giving a blowjob to an intern. he came all over her Operation Odyssey Dawn portfolio.
prez0 is regretfully accepting her resignation. in related news, warren buffet has pled to 75 felonies and ratted out everyone he has ever met...
To nuke silver you need the PHYSICAL... all Wall Street has is paper and paper burns...
+
we did nuke silver. and it was the physical. in WWII. "tons irradiated to build the A-Bomb."
I'm adding a .500 S&W to my anti-banksta arsenal. I want to see nothing but a red mist, muthafuckas.
And 2 rounds for the fucking junker asshole.
Did you mean a .50 AE?
.50 BMG Armalite $2,695
Woulda sprung for the Barret but thats another 100oz of Ag out of pocket.
@Spalding: when you stop being some fat Irish banker's bitch, you can start sucking Mr. Dimon.
$20 says the Smailes kid eats it.
Make it $40.
Nordic socialism...a socialism you can believe in. Good old white, protestant, northern socialism. And don't forget the Finns. Or Canadians, although there is a bit of Frenchiness involved.
Russians are different, however. Not sure why, maybe too much military spending?
No follow through on the bounce, at least for tonight.
Turds AWOL.... maybe tailend of a gin-bender?
I love it when these asshats shake the tree. Can't fuck with the grassroots physical longs. Please knock it down a few more $s, I have a date with a bearded coin dealer tomorrow.
President to make a statement at 10:30pm
RawStory: Still no specifics about Obama's coming late-night statement, but CNN reports it's related to national security. Again, 10:30EST @ earliest.
Anything to with this?:
http://tinyurl.com/3hcd2kn
Bring it ON! were ready for it, the attempt last week was quickly erased, this one will be as well. These are feeble attempts.
http://silverliberationarmy.blogspot.com/
i sensed fear on the CNBC set Friday. "bank failure Friday" kinda thing. "When the silver surfer flies, civilizations die."
it all sounds like bullshit to me. looks like a typical takedown by JPM and Bythe.
Whats with the Obama brief in 5 minutes?
He is going to announce that he is listing the White House silverware on e-bay.
National security issue. Brought all the news people on board because of the seriousness, per CNN.
Gloves off now silver bugs. Bring it! Just got short.
Price and contract?
quaddafi dead??
Now back to whos banging the stars, I mean dancing.
Link for late night Obama statement.
Live stream from white house.
For ya'll like me that ain't got cable.
http://www.whitehouse.gov/live?utm_source=wh.gov&utm_medium=shorturl&utm...
Oh shit! The President is about to announce a national threat announcement.
This is weird because I was just about to post a question about ''I wonder what kind of moves the insiders would make before Iran is dealt with directly
****I Just got a "Obama to Address the Nation" scroll at the bottom of my TV.****
Anyone else get that??
TuRN ON THE TV why is obama coming on in 15 minutes>>>>>
Steal viewers away from the "Apprentice"? lulz.
A take down because they knew it would be going way up?
I got a $5 spot on the remarks being about the debt ceiling.
They (the talking heads) are surmising that it might have something to do with Libya.
AP - In a surprise, late night announcement, President Obama stated that the TSA succeeded in thwarting a potential hijacking plot by apprehending a 5-year old girl who tried to pass an airport security checkpoint with a loaded water pistol.
TSA agents are quoted as saying they don't know what kind of water was inside the squirt gun, but it probably wasn't bottled water, and may have been tap water with heavy metals, micro-bacteria, and other harmful substances.
Details to follow...
O'Buttfuck is getting ready to speak on a Sunday night?
Is he resigning, oh shit, President Biden where screwed!
Bin Laden or interupting Celebrity Apprentice
Biden is funnier though, but he was Obama's insurance policy.
Interupting Trump and Bin Laden. It's a two-fer.
love the fact im sitting on ten k dry powder. waiting till friday to execute. love the dip or do i?
The President does not make a statement on Sunday night unless some really bad shit has happened or will happen soon.
Sony apologizes, says 10 million credit card accounts may have been exposed in network (Playsyation) attack. Wasn't the first report 70,000 ?
http://latimesblogs.latimes.com/technology/2011/05/sony-apologizes-says-...
Israel / Iran?
Israel / Iran?
I bet you Israel hit Iran. (Naaah, WH couldnt keep that secret.)
I hope Obama announces that he just BTFD :) This has got to be something that leaked out to the primary dealers in advanced.... there is gonna be something big tomorrow.
He just a saved a bundle on car insurance?
Apparently, Osama Bin Laden choked to death on some couscous and none of his fellow primitive cave dwellers knew the Heimlich manuever! :>D
How exciting. My first post, right while Obama is announcing the end of the world. Been nice known' you folks.
Heavy russian rhetoric over the weekend...
If it were Israel Iran we would hear faster out of bounds
agreed, sorry, fat finger
Futures haven't blinked
Bin Laden
Black Flag May Day Announcement that The Federal Reserve & Ben S. Bernanke have been declared an enemy of the state and will be destroyed for trying to 'blow up' the U.S. currency.
May 1 is a huge Illuminati day.
AP - In a surprise, late night announcement, President Obama stated that the TSA succeeded in thwarting a potential hijacking plot by apprehending a 5-year old girl who tried to pass an airport security checkpoint with a loaded water pistol.
TSA agents are quoted as saying they don't know what kind of water was inside the squirt gun, but it probably wasn't bottled water, and may have been tap water with heavy metals, micro-bacteria, and other harmful substances.
Details to follow...
ALERT! as Osama is now dead, PM's are going down hard. Don't discount Benie tighten by a point Tuesday to push the PM's even harder and declare that they were in a bubble.
Could be ''The Tipping Point'' is in the wind.
On a side note: http://www.projectworldawareness.com/2010/10/terrifying-scientific-discovery-strange-emissions-by-sun-are-suddenly-mutating-matter/
...was reading this when the flash came.
AP - In a surprise, late night announcement, President Obama stated that the TSA succeeded in thwarting a potential hijacking plot by apprehending a 5-year old girl who tried to pass an airport security checkpoint with a loaded water pistol.
TSA agents are quoted as saying they don't know what kind of water was inside the squirt gun, but it probably wasn't bottled water, and may have been tap water with heavy metals, micro-bacteria, and other harmful substances.
Details to follow...
Fox confirming Osama Bin Laden Dead.
no shit, his funeral was 5 years ago.
"shtf" so "bring out the body now." i agree "sure sign we're in deep doo-doo."
Didn't Bush come on TV on Sunday night about 30 minutes before bombing Iraq?
Bin Laden Dead.
some body holding
lotz of paper silver
figured it out
there is to be no metal for paper...
OK, can we get out of Iraq/Afghanistan now?
http://jessescrossroadscafe.blogspot.com/2011/05/portrait-of-desperation...
http://jessescrossroadscafe.blogspot.com/2011/05/portrait-of-desperation...
http://jessescrossroadscafe.blogspot.com/2011/05/portrait-of-desperation...
Do you think the Ag sellers knew this beforehand. Just sayin.
Bin Laden Dead, no shit...
Love the news.
Does it matter?
why was he in libya?
Osama is dead. Big deal. You don't interrupt The Celebrity Apprentice for dat. Trump is not happy.
Takes the Qadaffi miss off the front pages. Pakistan will now double down on efforts to rid their territoryof drones. Panetta to Defense with mandate to wind down wars. Timing?
I wonder how much Silver was used in the bomb/missile that killed Bin Laden?
In celebration of The founding of the Illuminati of May 1, 1776 we give you.... a nice dip in Silver.
http://en.wikipedia.org/wiki/Illuminati
Game theory on this needs to consider we may have just given him martyrdom (for his insaniacs.)
Yawn.......OBL dead....;..
Not to be outdone by MF GLOBAL, TDA/Thinkorswim has just DOUBLED the CME margin requirement for silver!?! R U getting this, Tyler?
OBL owned a tonne of silver.
Dollar stronger across the board on news on FX. Yen being sold.
All Dollar-corellated things are up on this news. People somehow read this as a bullish thing for the USD. go figure... Euro is getting slammed real hard.
Welp, .... there ya have it! JPM has insiders in the pentagon after all. probably got a call on the red phone around 630 about osama and decided to go for it. why not, right? light volume... dead terrist... silver is our enemy... why not?
If positive for US$, the S&P would be weak, not strong, as very recent inflation in S&P has simply been inverse to US$ fall.. IMHO, of course.
Futes loving the OBL news: S&P up 9. I say it won't last. OBL has been virtually dead for a long time. Next.
Exogenous cause rationale is purely linear extrapolation...no, silver did not plunge because of this or that....it plunged because the zanniness ended, the mood changed, as Elliot Wave shows, silver finished it's 5th of 5 waves up...the only direction was down.
So the silver market is tanking because the boogie man died?
Come on.... Obama shows a birth certificate and bin laden is dead... soon we will here the economy is back on track and that Bernake will be the VP running mate in 2012 with Obama...
I can see it now, JP Morgan says silver cost 4.50 to dig out the ground and that this is the mother of all bubbles...
sleep tight ;)
Maybe "nation Bin Laden" used silver as their reserve currency. "Upon death reverted back to the banks." Rumor has it "it was not the bank of Afghanistan, either."
All markets have corrections, yes even ours. So what. What is the big deal of a 10-15% correction. We have seen that a dozen times with gold. Why are some so giddy when gold, silver move lower. Do they come out when AMZN drops 10 bucks or RIMM loses 15%. Nope, never see them frothing at the mouth then. Just when gold and silver dump. Goes to show they probably had very little of the "barbaric relic", years ago. Just beyond words.
15 percent corrrection is no big deal but really you think it will stop with that after a 100 percent run up in three months I say come on get real. You junk all the people who warned you about this even the ones who are real zero hedge fans too bad all of you guys think in herds and go mad in herds. Mark Twain once said the common man is one who thinks he isn't. I guess that makes all you guys common men. Mo mo traders not real contrarians.
Virtually every one of your posts reeks of bitter envy and/or of disingenuous and mindless PM-bashing. Really, why the fuck do you bother --- or is it just about the money? Either way, maybe you should refocus your efforts on the pigeons in the park; you'll have better luck getting any of them to listen to you.