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A Millisecond Analysis Of The Latest Gold Smackdown
On December 4th, 2012 at 47 minutes and 13.1 seconds after midnight, 2,035 February Gold Futures contracts GCG3 took the market down $10 as fast as the exchange could execute the order. This invisible hand that decided that that was the perfect time to execute a trade for over 200,000 ounces and $345mm notional of gold is exposed in oh-so-visible a manner by Nanex's eagle-eyed millisecond-by-millisecond charts below. As the day wore on, there were more of these sudden 'unexplained' price moves. Cue 'Twilight Zone' music...
Via Nanex:
1. 30 Second interval chart showing trades for the first 9 hours of trading in the February 2013 Gold Futures Contract (GC.G13). The midnight crush in the first drop on the left.
2. Zoom of chart above showing about 45 seconds of time. Thin gray line is quote spread.
3. Using a 1 millisecond interval to zoom in on one second of time. The trades are the squares. The Bid/Offer is the dark gray shading. When trades first execute, then the quote follows, it's because the entire book was swept.
4. Later than morning at 3:45:05 Eastern time, a jolt to the upside.
5. Later that morning between 8:36 and 8:40am Eastern, more sudden buying and selling events took place. The chart below is an overview of these events.
6. Zoom of Chart 5 showing first event.
7. Zoom of Chart 5 showing second event.
8. Zoom of Chart 5 showing third event.
9. Zoom of Chart 7 above showing 1 second of time.
Source: Nanex
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In a fiat fraudulent world there cannot be an alternative currency, therefore gold must be taken down and swapped for worthless fiat. Only explanation that makes sense to me.
Gold for the money masters, and paper money for the plebs.
See the rising amount of gold and silver bought by central banks in recent years.
Always follow the money. That reveals who is lying.
They'll manipulate until the inevitably lose control, then they'll confiscate.
They've done it before.
When things have gotten so bad the Fed can't control the price of gold, it will be easy to demonize the "hoarders" who have "undermined" the economy with their market "manipulation".
Oh, the irony.
algos are only able to "accomplish" moves like this because there are idiot human stop orders on the other side.
the problem is the stop, not the algo.
just admit that you're guessing and buy your little bits of gold, or actually learn how to trade and make money whether there are algos or not.
using a stop order is like playing poker with all of your cards up
If you've got the cards, what difference does it make?
Absurdity on steroids
Since the CME Comex gold margin reduction began 2 weeks ago the cumulative London PM fix decline since then has been $41. Of those 11 PM fixes ALL have been lower, or no higher than $2. Even more outrageous EVERY Comex open since then has had a sharp selloff. In fact an astounding 19 out of the past 20 (95%) of the Comex opens have sold off sharply. How about those odds? The cartel's relentless scaling of shorts from $1,710 to $1,750 paid off handsomely courtesy of fleeced spec longs. As you have said there are few coincidences in this business, and the margin reduction so far, and as always, has rewarded the bad guys. I know it gets old repeating the same manipulative evidence over and over.
One can only marvel at the latest in-your-face methodology of the suppression scheme. To say up is down, black is white doesn't due justice to the absurdity. Then again imagine the fiscal cliff our politicians would be facing if gold were already $5,000. They might be looking at 1 - 2 trillion in additional annual deficits if entitlements tied to COLA's, and higher interest rates were factored. To the Fed suppressing gold isn't just important, it is EVERYTHING. For the CFTC to claim they lack authority or the tools to stop the manipulation is pure BS.
So many reasons to be bullish, so few cartel players stopping the advance. When the tide turns it will be absolute, and irrevocable in nature.
http://www.lemetropolecafe.com
.....................................................................
Jim Willie is the editor of the "Hat Trick Letter."
He has a PhD in statistics and crunches the numbers on things like gold, currencies and bonds. Jim Willie says, "Gold is the anti-bubble. . . . It is the response to the biggest bubble in the history of the modern world, and that is Treasury bonds."
It was recently reported the Federal Reserve is buying 90% of all Treasuries. To that, Willie says, "The supply of gold is lacking and demand for Treasuries is evaporating. It’s that simple." Willie thinks the global economy will not get better because, ". . . they have no solutions, and they are praying they can keep this going." Like it or not, gold is going to make its way back into the monetary system. Jim Willie contends, "The gold standard will return because gold will be the last asset left standing. Everything in paper is going to go to Hell." The transition will be very painful. Willie says, "We have a climax bust coming for bonds, currencies and the banking system because they are all interrelated." Join Greg Hunter as he goes One-on-One with Jim Willie of GoldenJackass.com
USAWatchdog.com
Kid traders are being taken to the wood shed for a kicking by the algos, owned by freak biggest Wall St banks and 'insurers' who own Washington, the political pets in DC.
Tsk. They will be slaves to the corrupt system until they choose values over prices; fundamentals over fun.
Table limits are needed in Vegas to prevent losers from repeatedly doubling-down until they win back all they've lost.
The "table limit" of the global economy is war.
OT, but is anyone listening to Ground Zero w/ Clyde Lewis? Pretty wild show tonight...
Ta, but no.
So how was the gold transferred from seller to buyer? By truck? FedEx? Duh..........
I must say that I am impressed that these guys can still suppress gold. I would have thought they'd lose control of the price round about the time everybody realized what it means that the Fed is basically the only Treasury buyer left. Remarkable, but it cannot last. Fine for now, as it keeps the window open.
I am not amused, nor impressed. They are trying to kill my Republic. F'em.
Ok, I have come to a conclusion. But first a comment: if the markets are rigged for the benefit of the banks and to the detriment of the physical gold/silver holders, what makes you think that you ate going to EVER get a fair price for your gold or silver. There has to be a paradigm shift of massive proportions before GOLD or SILVER will ever go to its real value. There just seems to be much ado over some yellow metal. I was reading on GOLDSILVER.COM, ZEROHEDGE, SONSOFLIBERTY, ETC.. That gold will go up in 2011, 2012, 2013 and now 2014. Double in price, triple, quadriple...adding one, two or three zeros to the price. But he numbers quoted ARE STILL QUOTED IN DOLLARS, the very enemy of the physical metal. Call it barking mad, but I would have thought that somebody would have stated this simple and straightforward premise. I quit buying gold and silver when one of the speculaters said gold will go to 4000 by the end of 2012. And..... It's not there, and WILL NEVER GO THERE EITHER.
Instead I have switched.... I am now purchasing LEAD. in round form. Which feeds flawlessly into the bulk of my LEAD launchers.
Likening gold/silver and lead to chess... Gold/silver is the king and Lead is the Queen. The queen puts the kings nuts where she wants them. Queens rule
...and so does Freddy Mercury.
You can't eat gold or silver..... But you can eat LEAD...you won't like it though.
Just saying?
You only need lead when failed politics and its latest experiment in paper money fails.
Gold and silver are the world's only true money, and that's why central gangster banksters buy it, and sell their paper to plebs.
Central government hates you because it loves the paper money of central gangster banksters, the world's biggest criminal gang.
There is one party, and you are not invited. George Orwell's 'Ninety Eighty Four' and 'Animal Farm' was true. He revealed the hateful way of the inner party, and the bureaucrats.
It's a good time of year to be buying.
The Protectorate are trying to shore up their books for end of year perhaps.
I had the day off yesterday. Driving to the city and pulling the trigger will work out just fine in the end.
Trade as you must for your employer. Keep yourself safe with some gold and silver. Your employer does not own you.
Just a small reminder: it wasn't "7 minutes and 13.1 seconds after midnight" all around the world... I understand it seems a difficult concept for non-US readership but there is something else as lower Manhattan time zone. I certainly agree that it's not the most liquid part of the trading day but it could very well be, for instance, forced liquidation for an European holder at a perfectly "normal" office time. Just a thought...
Fundamentals will save your book, and fun will ruin it.
Just a thought...
Godzila, you make a good point about the arrogant and ignorant insularity of so many Americans, particularly US east coasters.
I cannot tell you the number of times that I, and many, many other people whom I know in Alaska and Hawaii, have been rudely called on the telephone at 3:00 or 4:00 AM by people in the US Eastern time zone who just assume that EVERYONE in the world is living in the same time zone as them. And this is NOT an isolated occurrence, either --- I have a friend who owns a small business here in Alaska, and she is called virtually DAILY between 4:00 and 4:30 AM (Alaska Time), usually multiple times, by clueless and inconsiderate customers in the Eastern time zone. And they KNOW that they are calling to Alaska --- it's just that their "My world is the ONLY world" mentality prevents them from realizing what they are in fact doing.
Most of the conclusions on offer here seem to be predicated upon the notion that somebody is still in control...
that's highly unlikely...there's so much water pouring overtop of the dike at this point that it matters not how many lil bankster boys are stuffing their fingers in the holes below the waterline...
this is quite literally Homer Simpson in charge of operations central...http://theeconomiccollapseblog.com/archives/the-coming-derivatives-panic...
gambling is an addiction...gambling with other peoples' money is a sport ...gambling with other peoples' futures is a bloodsport..Wall Street is Circus Maximus
The solution? Stay close to family, neighbors. Defend the Republic. Our home, our land, our values.
Gold and silver are the world's longest currency, outliving every paper money experiment.
Happy Christmas.
'Give him silver and gold,' says a hymn. The Pharisee are money changers who even today lack humility, and trade people like mere tokens.
https://www.youtube.com/watch?v=qZ1-duv_zNk
Some day at Christmas...Stevie Wonder sings our American way. Ignore the bull$hit creepy politicos riding on him.
Well two days later, gold is still going down in price. It's not exactly like it was a 1-second event. It's been going on for days now. Gold is just something people like to buy and sell. It's call trading and it's what finance has become all about. Gold is just not a protection against anything. It's a toy.
Sell, and I'll buy. See how you feel in 2015.
You trade. I invest.
Fiscal cliff = debt slaves.
You guys need to understand the difference between a fact and an opinion.
If you had sold gold a year ago and put your money in a saving account yielding 0.5%, you'd have more money today than you had last year. It's just a fact.
Obama won the election. It's a fact. That doesn't make him a great president or right.
Gold may go up in price in the future. It's not the point here. The point here is that gold has been losing value against other major currencies for days now, not just for 1 second two days ago.
And you want another fact hard to explain: France's borrowing cost has been going down since it lost its AAA.
You guys can't really handle the truth.
So, do you really expect the price of gold to ONLY move higher, on an hour-by-hour basis, forever? If not, what is the point of your complaint? Are you THAT unable to think outside of the ultra-short-term timeframe?
I don't think that anyone here refuses to acknowledge that fact that the price of gold, indeed the price of virtually EVERYTHING, has dips and peaks. So your "argument" is pointless and specious --- so what if the price of gold moves downward for a few days or a few weeks? In the longer run, it is patently obvious and undeniable that the value of the fiart currencies that we are forced to use in lieu of money are constantly losing value, and likely face a catastrophic decline in values in the near-to-middle future due to exponentially-rising governmental overspending, borrowing and debt. So keep on daytrading and engaging in ridiculous gold-hating trolling, and the rest of us will continue saving in the one form of REAL money that no government can debase.
...gold has been losing value against other major currencies for days now...You guys can't really handle the truth...
wow, gold has lost 'value' against fiat for two days!>!>>?!???...
on a long enough timeline, if that pattern were to continue, clearly I would blow my brains out...
oh, wait...there's somebody available to do that for me...in the now traditional, two bullets to the head shot formula suicide...
good to know, somebodies' still in charge here.
Gold's a toy?
Well, if gold's a toy, I's the b'y....
And I's the b'y that sails her
I's the b'y that catches the fish
And brings them home to Liza.
Toyz fer boyz...no boating accidents applicable. I'll tan yur scaly hide at a suitable newfie outport anytime o day...an you'll hae no protection gainst nuttin!
Just interesting to note that the DogFuckers at GS issued their bearish Gold call and to make sure it seems genuine selling is underway. All the time GS will be 'backing up the truck'. 100% guaranteed.
regards
It's pretty well accepted here under the Hedge that the smart investor pays attention to every bit of public advice from GS. Then they jump the opposite direction and make some money right along with GS.
:) This is everyday life in the DAX index. This "invisible hand" you mention, tent to salute every step or move by the centralplanners. politicians or central bankers. You pick.
I'd really like the 'Invisible Hand' to stop reaching into my billfold.
Beat price down ... then trade Tungsten Gold for Real Gold... Benny & the Ink Jets know all the tricks.
When the paper gold exchange blows up, the last man standing gets tungsten instead of fiat.
Rupee positioning............ante and post FDI vote. On no,wait, dark forces and men in grey suits sitting in windowless rooms. Got it.
http://youtu.be/xGjk1Y_j8QE
Caesar asks no shellfish
I read today that the ETF GLD has 1800 tons of gold paper issued. Do they have a huge vault with all that gold on hand? If not, where is the physical gold located? How many different vaults is it in and who owns the vaults? Are all the vaults in this country? Enquiring minds want to know. Supposedly the is some theoretical insurance backing it up if it goes MF Global, but that is funded by our govt. and we are broke. What if there is a run on gold funds like a bank run?
I read today that the ETF GLD has 1800 tons of gold paper issued. Do they have a huge vault with all that gold on hand? If not, where is the physical gold located? How many different vaults is it in and who owns the vaults? Are all the vaults in this country? Enquiring minds want to know. Supposedly the is some theoretical insurance backing it up if it goes MF Global, but that is funded by our govt. and we are broke. What if there is a run on gold funds like a bank run?
The ETF GLD gold is highly leveraged.
I'm keeping the entire physical in my sock drawer for them.
Does it really matter who's in charge at the Treasury these days? I don't think it matters anymore being that the FED is monitizing almost all of our debt now that we have noone buying our bonds anymore Geithner has no choice but to print, print, and print more money. With the amount of spending over the last 12 years, there is no way we can be saved but by slashing government spending or massive tax hikes on everyone or both. There will be little or no growth over the next ten years. We will become japan in short order. IMO
And what is really funny is the Politicians are fighting over 800 billion in so called new revenues in ten years that will turn out to be 400 billion or less to negate a 25 trillion dollar increase in the already 16.3 trillion deficit.........and we all know government spending is going up...they will not cut the freebies...they will have to incrrease them as more go to welfare....the 47% will become 55%...
The investment thoughts we all should be having is what to do for the next 10 years.....industry will move...corporations will move or be bought up by emerging market powerhouses or soverigns....companies will move to where the growth is...and its will not be in the USA or the EU.....to sell stuff you need growing economies...not growing welfare states...
Short term I am into gold and silver....I am trying to get out of my real estate...they will tax us to death on that..capital gains..property..etc...
in Ten years the world will be a much different place....the center of gravity will have changed....
Footnote....I live in Colombia.....I get a daily suprise on what natural resourses they have here....if they can controll the FARC war..it will just cost money...it opens up a new frontier for Colombia...and they are finding a lot of stuff down here....gold ..silver..nickel...coal....oil...gas...rare earths...foodstuffs...hydroelectricity...and of course drugs...since the USA seems to be OK will the legalization of drugs..it will be a new legitimate business down here ...etc....for a country with only 45 million people...they will be very rich....and boy can you see it in their eyes...they want to be...
HFT allows you to drive the market price of any asset just where you want it to be.
The only place where assets are valued is the shadow banking ... so peasants won't see it
Paper gold, you can talk around with it, you can walk around with it, but you can only cash it in at one place. And then spend two paper gold dollars to get one dollar of physical gold. In this case, the early bird gets the worm without having to wait in a 1930's style bank run line, cause even some of the wealthy don't quite relize the depressionary state they have masked over as sunshine.
It almost looks like Gold is being manipulated or something.
Disclamer; Tunga is not FL_conservative.
I think the physical metals price is running away from the paper price (again) and we all know what happened last time this happened.
The premium is increasing and strong in both silver and gold.
Andy Gause, a big east coast seller, says he sees the same thing there. Premiums are increasing.
South Africa gold is still off line (1/5 of the world's supply).
As a small manufacturer here in Texas, I just saw my physical costs for materials increase 4.5% just this month. About 10 months again they jumped another 4 or 5%. So inflation is coming like a runaway train.
I buy gold and silver for my retirement because I know 10, 20 or more years from now, they will be higher, UNLESS the gov starts to pay all it's bills, stop printing money, balances the budget, and so forth (yeah . . . . . ).
Dollar cost accumulate and don't trade the market, just sit back and stack.
I think the physical metals price is running away from the paper price (again) and we all know what happened last time this happened.
The premium is increasing and strong in both silver and gold.
Andy Gause, a big east coast seller, says he sees the same thing there. Premiums are increasing.
South Africa gold is still off line (1/5 of the world's supply).
As a small manufacturer here in Texas, I just saw my physical costs for materials increase 4.5% just this month. About 10 months again they jumped another 4 or 5%. So inflation is coming like a runaway train.
I buy gold and silver for my retirement because I know 10, 20 or more years from now, they will be higher, UNLESS the gov starts to pay all it's bull, stop printing money, balances the budget, and so forth (yeah . . . . . ).
Dollar cost accumulate and don't trade the market, just sit back and stack.