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"Stop Logic" Gold Slam Was So Furious It Shut Down CME Trading Again
It was precisely a month ago when, in "Vicious Gold Slamdown Breaks Gold Market For 20 Seconds" we wrote:
There was a time when, if selling a sizable amount of a security, one tried to get the best execution price and not alert the buyers comprising the bid stack that there is (substantial) volume for sale. Of course, there was and always has been a time when one tried to manipulate prices by slamming the bid until it was fully taken out, usually just before close of trading, an illegal practice known as "banging the close." It appears that when it comes to gold, the former is long gone history, and the latter is perfectly legal. As the two charts below from Nanex demonstrate, overnight just before 3 am Eastern, a block of just 2000 GC gold futures contracts slammed the price of gold, on no news as usual, sending it lower by $10/oz. However, that is not new: such slamdowns happen every day in the gold market, and the CFTC constantly turns a blind eye. What was different about last night's slam however, is that this time whoever was doing the forced, manipulation selling, just happened to also break the market. Indeed: following the hit, the entire gold market was NASDARKed for 20 seconds after a circuit breaker halted trading!
Moments ago it just happened again. As part of the already noted massive gold slamdown just before 9 am Eastern, when "someone" sold an epic 2 million ounces of gold in one trade, the CME just went dark for 10 seconds, blaming it on an appropriately named "stop logic" event.
What is Stop Logic? Basically, it is a the mother of all stop hunts, which takes out the entire bid stack and continues until such time as there is absolutely no liquidity left in the entire market! From the CME:
Stop Logic detects potential market movements caused by the triggering and trading of Stop orders where the resulting price move would extend beyond an exchange specified threshold.
The triggering of Stop orders can potentially exaggerate price movements in temporarily illiquid markets. When triggered Stop orders attempt to move the market to an executing price beyond a pre-established value, a Stop Logic event occurs. Stop Logic detects these situations and responds by placing the identified market in a Reserved state for a predetermined period of time, usually 5 to 10 seconds, depending on the instrument. During the Reserve period, new orders are accepted and an Indicative Opening Price (IOP) is published, but trades do not occur until the Reserve period expires, thereby providing an opportunity for participants to respond to the demand for liquidity. At the end of the Reserve period, the instrument will re-open and matching will resume.
When a futures contract designated as a lead month contract experiences a STOP Logic event, associated options markets are paused and Mass Quotes canceled.
Stop Logic will not prevent markets from ultimately moving in the direction of the order flow, but allows time for liquidity to enter the market so that new orders can be matched against the triggered stop order(s).
Of course, the liquidity we re-enter at a time when the prevailing price has been reset substantially lower on what is basically a "banging the open" type of event, or in this case market open, when one or more traders attempt to generate the well-known "momentum ignition" event so known to HFT algo manipulators everywhere.
The chart below from Nanex show precisely when and how the trading was stopped for 10 seconds in the aftermath of the furious sell trade.
So what is an investor who believes this was manipulative trading to do? Well, nothing. Recall that the ever helpful Bart Chilton already made it clear that commodity (read precious metal) traders are on their own because, as a result of the furlough, the regulator simply incapable of doing anything.
From: Chilton, Bart <BChilton@cftc.gov>
Date: Tue, Oct 1, 2013 at 9:32 AM
Subject: Re: Today's Smackdown
To: XXX@XXX
No regulators looking at markets due to government shut down.
B
NOTE: Ponzimonium: How Scam Artists are Ripping Off America, is now available in a FREE EBOOK edition. Go to the link for your copy and a Government Book Talk interview: http://govbooktalk.gpo.gov/2013/09/03/post-ponzimonium-an-interview-from-the-front-lines/
* * *
From: XXX@XXX
Sent: Tuesday, October 01, 2013 09:16 AM Eastern Standard Time
To: Chilton, Bart
Subject: Today's Smackdown
Commissioner Chilton,
Any comment on this morning's shenanagins in the gold and silver pits? Time to reopen an investigation?
Is credibility important to the CFTC?
Regards,
XXX
Expect market halting gold trading dumps to continue indefinitely, and certainly for the duration of the CFTC's "shutdown", which of course is helpful to those, like China, who continue to convert increasingly more diluted fiat into hard stores of value.
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Oh, I see there's at least one bullion bank trader, BIS trader or SEC incompetent compromised fuckwit reading this morning. Go fuck yourself you fucking traitor.
Doesn't stop with the perp - they send the relatives an invoice for the cost of the bullet....
How simple (dumb question I know) would it be for China to buy as much physical as possible, then tell other nations, "Sorry, we don't use the USD as a trade currency?"
Yes, exactly. That's what they're doing, if you connect all the dots - the bilateral trade agreements, the funding of African development deals (using Treasuries), accumulation of resource producing companies, end of US debt purchases, massive accumulations of gold. The only thing they haven't done is made some public statement about when the cutover date is.
And our treasonous governments and international bankers sell the general population down the river to line their own fucking pockets - fucking traitors.
You're kidding, right? They've already started.
http://www.silverdoctors.com/jim-sinclair-china-paying-for-iranian-oil-i...
http://www.dailymail.co.uk/news/article-1332882/China-Russia-abandon-dol...
Keep buying phyz...either you're in or you ain't.
HFT's paper crushin' aint got squat on ol' Gordon Brown.The man is a genius ,'the real deal',afterall he was the one who oversaw and pre-announced the massive BOE monkey hammering of physical gold to under 250 bucks.Rumours circulated at the time that he orginally intended to give out gold for free.
The man remains a legend.
Brown Bitchez!
Brown simply did his job, as a whore for the Rothschilds, to allow them to exit their massive short position. Rothschilds left the gold market - part of the deal - , but bought into BullionVault, a few years ago. Rothschilds will be back.
Gordon, we salute you! <middle-finger>
Something wicked is underway,
In a fog of lies we sway,
Nailed to a fiat cross,
Oblivion is our final toss.
Logic was stopped a LONG....LONG....time ago.
Is that the last of the USA gold? Those shiny bricks paint gold at the FED/Treasury are unusually light.
Did everyone have their buy orders in at 1270. Profit time, no?
yes? er, who can say?
I'm ready to buy some more! Should I wait for it to go down more or buy now? What do you think?
Due to rampant illegal manipulation it is impossible to say. I intend to purchase more myself, but am waiting to see what happens with the political theatre now in progress. Let's face it, all this uncertainty, especially with the Bernank MkII positioned to ctrl-p her ass off, and there is a whole lotta ass there, not to mention the huge demand for physical, gold SHOULD be soaring. However, since the US treasury has obviously been caught off guard with ummmmm, shall we say with insufficient gold on hand (I suspect many other CB's are in the same leaky boat), there is a ferocious need by some deep pocketed serial manipulators to get and keep the price as low as unrealistically possible, until they have their tungsten cored ducks in a neat pretty row. Then .......... to the moon Alice!!! I actually have a nagging suspicion that the US will eventually claim, that in order to restore faith in their worthless FRN,s, they will revert to a gold standard and, once again, confiscate all the gold bullion they can get their filthy, grubbing talons on. They will pay a set price per oz for your gold and then jack that price waaaaay up once they have all the gold in their possession, thereby improving their fiscal position, once again, at the expense of the few prudent citizens. I may add to my silver stack instead of gold instead due to this fear. I must say, however, and I hope the NSA takes note, I will under no circumstances surrender my gold to these theives. I will cheerfully go to jail first and let the stupid debt donkeys support me while I get a PHD in law, get all my health needs taken care of, including lots of viagra for my limp weiner, and maybe a sex change......just because.
Just my opinion.
P.S. Fuck you Obutthole, the Bernank, The Bernank MkII, and all your egg sucking masters and pawns. And especially a great big eat shit and die to the entire intelligence/traitors-in-waiting community.
Thanks for your opinion. I hope that doesn't happen. What could we do to stop it? Say it got stolen or lost?
Might as well make it interesting, since they won't believe you anyway. I like stories like the following:
My dog ate it.
Aliens abducted my gold.
I gave it to charity.
Chinese hackers stole it.
It was corzined.
It decomposed due to improper storage.
I lost it gambling.
I spent it all on drugs.
Best one of all:
FUCK YOU!! Try and find it assholes!
I plan on trading my stack for materials and services (non-GMO food & seeds, tools, renewable energy, land, etc.) that will be relevant in the new economy via the network of like minded individuals I am tapping into. If they come to confiscate what's left, then I will be forced to distribute my remainders to said network as a token of thanks for future assistance. They can put me in a FEMA camp but they will never get access to this network from me.
Wouldn't it be wiser to use that fed issued toilet paper known as FRNs for the purchase of the materials and services you mention?
My Excuse will be I spent it on Prostitutes and Congress men.
They are going for their ' slam dunk ' predicted target of $1050 (they are going to try and make it happen).
How many mining operations are going to ramp down or shut down completely if it gets to that price level?
It's just not sustainable.
You should better ask "how many mining operation HAVE ALREADY ramped down or shut down completely?".
I have connections to the North American gold mining industry, and to call the current situation in that sector 'grim' is to grossly understate the case. At gold prices any lower than today's, you can expect to see NA gold production easily halved (or fall even worse) from the productions level of say last year. Worldwide, a fall in production of easily a third. And with that, keep in mind that prices (well, in a REAL market anyway) are set at the margin, and ....
so, a 400 lot order is a big deal?
Is High Frequency Trading (HFT) a good thing? If not, it sure would be easy to make it totally ineffective. From what I've seen it is not a good thing. All you have to do to stop it is add a random amount of time to the timestamp when an order is accepted (e.g. 0 to 2 seconds uniformly distributed). Then FIFO release of the order by timestamp would eliminate any advantge HFT has over other traders. Whipping of the market would be eliminated.
It's just not important to get the best price for a naked short I guess.
They must paper short it for the children.
USA keeping an orderly house as usual. Just a computer glitch.
Apart from a few swipes at people trading insider emails etc has there been ANY retribution or visible accounting for the obvious and continuing market crimes - even those still in progress? Certainly not by the FSA as was in the UK - now all washed away with that sorry arm of government - now replaced by the FCA so that they can award a fresh set of honours. But how about the USA? Any action at all there? I guess not - since clearly it is the administration which is the author most market manipulation.
Any sign of unrest on mainstreet amongst those who will watch whilst once again the club propsers at their expense? Must be imminent otherwise Homelamnd Security will not have any moving targets for shooting practice.
You got to love financial repression. Must be time for the "recovery"! Any green prints today?
BTFD.
A truer acronym has never been posted.
Bitchezzzz
EVERYONE :: Please to not associate the price of paper gold with the "REAL VALUE" of physical gold..... there is NO CONNECTION, except that during these dramatic times when you can buy the physical for a fewer number of fiat dollars.... but this condition will not last, it's only a side effect of the manipulation mechanics by the banksters.
Use these times to buy physical gold & silver, and ignore the short term valuation(s) measured in fiat dollars.
So many bearish factors for Gold: Empty COMEX, Empty JPMorgan vault, uber dove Janet Yellen to the FED, Increasing Debt Seiling - please do not mistake it with Increase of Debt!
Who is Selling and Who is buying?
Peter Schiff: Gold - Out with the Debt Ceiling, in with the Debt Target!
This circus is getting more hilarious by the day if it was not so tragic. Chinese are not lost in translation this time and what ever President Obama dreams about Debt and how it is not increasing with the increasing Debt Ceiling, they are just buying Gold. http://sufiy.blogspot.co.uk/2013/10/peter-schiff-gold-out-with-debt-ceiling.html# Catalyst: Uncovering China’s Rush for Gold GLD, GDX, MUX, TNR.v
"While a lot of people are still wondering why the Gold is beaten down again, it is important to keep the big picture in front of you. As it is happening with Copper now the main player in this market is the same - China is on track to implement state level plan to diversify US Dollar based assets.
We would like to share with you brilliant report conducted by Jan Skoyles on this subject."
For the last couple months, the $1000-1050 stories have been trotted out by the usual hacks. Now they are going for it. The plan might dissuade low IQ amerikunts, (sorry, dipshits) but it won't faze the rest of the world.
The more brazen the action the less impact it will have... elsewhere.
When the corruption gets so obvious as this, when the CTFC TPTB see nothing but are in fact a crucial part of the corruption....it shows TPTB and whoever own them don't care, and either think they no longer need to care, or too desperate to care.
These people are so used to perpetrating gross corruption they have come to believe they are totally safe forever more.
But as in other countries, when the worm turns, all of a sudden the corruptors get cold sweats and look for scape goats.
What happens if the US collapses, becomes a total economic weakling because of an increasingly abandoned dollar? Already the country is full of the poor and part time workers...and that is guaranteed to get worse. The greedy have gone to far and left no crumbs.
The focus turns inwards....the corrupt regulators, judicial, banksters become the new focus...people want something to focus their hatred on.....the Bart Chiltons of the world have to answer nasty questions, find themselves in deep trouble...
You can bet all the reulatory captured scum will be the ones TPTB throw under the bus to protect themselves when the SHTF. The Corzines will find actually find themsleves in arse raping prisons.
History has shown this so much you wonder how those in the potential firing line don't run for the hills...you don't want these positions when the music stops.
Sounds sick.
The doctor is in!
Here, take this Occupy Bank Card, EBT card, tune in to Dancing with the Stars, and facebook me tomorrow!
At least Dick Turpin had the decency to wear a mask.
Stand and Deliver!
Can someone explain this: 2,000,000 ounces sold at $1285/ounce = $2.57Billion
Who could possibly make a trade like this?
it's absurd that NOBODY on the inside is willing to blow the whistle on such a ridiculous "trade" by identifying the perpetrators, for all to see...
https://en.wikipedia.org/wiki/Roberto_Calvi#Death
Just a hndful of countries, central banks and soveriegn wealth funds. I suppose a few hedge funds too but that would be a huge bet for them and to what end?
Yes, but take note... the huge amounts of paper that are getting dumped recently are not having the same devastating effect on the price as they did in 2011, or 2012. These are all buying opportunties.
Someone who can create money out of thin air.
Carlyle Coup
private owners are transferring,
thru the fed back channel machinations,
physical metal from one place to another
and that does what for me?
.
somewhere in there is an argument for
individual sovereignty and almost all that hangs
off of it, say liberty.
In every arcade I've played in, when you Tilt the machine, they kick you out.
Fuck you Bart, and your 80's hairdo too.
This ain't no chicken little stuff.
This isn't manipulation for profit.
This is economic warfare.
Sappers in the wire bitchez.
Maybe the whole debt bullshit/sequester jobs was so bankers could unload while vigilant Bart's away...
Nahhh. Cock up.
My God
Where is the outrage?
At this point, the most senior members of financial investments firms that do business in the PM markets need a petition to step forward and propose very publically and loudly a new COMEX market and a system to replace the CFTC. Why isn't Andrew Maguire, Peter Schiff, Max Keiser among so many others pushing this?
Unlike petitions that depend on the government to weigh in they go solo this time and say for the good of both the currency and metal markets this will go through with or without the endorsement and support of the most illegal and corrupt representatives in both the House, Senate and Justice Department.
Nothing will change until a go it alone attitude strategy starts to ferment.
What I've always wondered is perhaps it's even orchestrated to the extent that the futures price of gold will go down all the way to 1000 $/oz, mining companies will be unable to make a profit and will all be sold to the Chinese. So it's not just a deal of keeping the USD strong and moving all the gold to the East, but it's part of the plan to make the Chinese the owners of all these mining corps?
I fuckin' hope not, Dig!
No more printing then? Looks as if someone had a peek at the future and realized that Yellen is probably not going to try and balance all plates in the air. She's a different type of circus act, that one. Her mandate is to preserve King Dollar come hell or high water.
I ask ya again, howz that gold woiken 4 ya?
When you go to sell your proud stash, I will be a buyer.
At much lower prices.
http://trololololololololololo.com/
Gold to 10,000
By the Year 20,000
They won't get ME...my "stoploss" has always been ZERO$.
Seriously, maybe they have no choice but to use their COMEX plaything more and more because they are overleveraged to the hilt and there's less and less of the actual metal they desperately need becoming available for sale at these ridiculous "gold prices"?
Well with a stronger AUD and weaker Gold.....I am going to have to buy more gold come monday. Too good an opportunity to pass up.
And I would think that by now all the physical gold is in strong hands, so dumping fake paper gold isn't going to shake much physical free....instead it will see more gold sucked off the market.
The way TPTB have spent imense efforts to supress gold and silver these past number of years just shows how fucking important it is to them.
Is the purchase of oil from OPEC nations based on the gold price?
So no one in Washington has heard anything from Boehner since last night? It seems strangely quiet all around. They must be really concentrating hard on how to fuck us all over
Like good servants, they're waiting on their Masters' instructions. Meanwhile, with volatility rising, there's money to be made from the rubes, so no resolution just yet, Carrot-top and Hopey, thank you and please stand by.
There were no regulators looking at the markets before the government shutdown either.
We are all a bunch of useless loonies if we think that all the internet chat and babble will get us to free markets again.
Tune in, drop out, and turn on....until the bullets start flying.
From Turd to Santa....it's all pointless lip flapping while psychopaths are in charge and evil MFers like GG and BC are regulators.
Depends. If the chatter IS the trade, or is notice to others where you can trade with least interference, then I'd say that's pretty good.
2 Million gold ounces is about 62 tonnes of gold in a single trade. Clearly that is not an individual but most likely a fed player trying to lower gold price with paper play. What is the FED syaing? They are buying time. Expect the paper slam downs to occur more frequently in the next few years. Interesting this slam down happened the day after the FED said they would not sell their gold to cover the government shutdown. Sounds like a nervous reaction in some way as if the FED is reacting emotionally in an unstable way perhaps.
Utterly disgusting to watch this fucking fraud play out every week.
Right, because it's always upsetting to get bargain prices on gold & silver when the price years later will be far over 3000.
when the mice are away the rats will play
Getting close to a strike price. Probably a deal is reached today and gold hits 1150 by next Friday. Don't you just love economy recoveries.
"Slam that god-damned barbaric relic! The sheeple must buy moar stawks!"
Silver took a hit at the same time.
Poor club deal on the 11b software. http://www.economist.com/node/3821814 the root of the problem of the private FED picking winners and losers.. This is not capitalism or free markets it is criminal acts that show the credibility of the dollar system.
How are these guys going to pay for the systems unless shut them down for price manipulation?
Ah just a conspiracy guy you know an Austrian.
will start buying gold @ 1100/Oz
I love when they do this on payday! Thank you big brother!
Just in case nobody has noticed, 1909-1982 pennies are now worth more than double face value and nickels are almost worth a nickel in melt value.
Load up. Worse case scenario, you'll have plenty of coin for penny-ante poker games.
Yup, http://www.coinflation.com
Markets are... MANIPULATED?
oh look, my surprised face.
2,000,000 oz is approximately 64,000,000 grams = 64 Tons for 20 seconds.
For 800 seconds they can buy and sell all of the gold produced on the wold for 1 year. Nice work guys. You are the true masters of the (imaginary) Universe.
In China around 50 Tons of Gold is exchanging hands (only) every week.
Sounds disconnected. Sure it is.
One is physical the other one is, well whatever one wants it to be, but clearly has nothing to do with the physical reality.
Gold whacked. so this means everything is fixed, nothing but blue skies ahead, yes?
Oh, wait a minute....
Only a fool would buy gold. The price of gold is obviously controlled by the IMF$. They can whip-saw the price up and down and make tons of money for their insiders.
Anyone stupid enough to trade in this "market" deserves what they get.
These smackdowns are a Godsend. If it wasn't for the manipulation, there's no chance a shrimp like me could accumulate so much gold in so little time.
When the "gold price" goes down, what it actually means in real terms is that I get paid MORE ounces each month. My wage is increased!
Would you be worried that your boss might give you a bonus? No? Well, neither am I!
Gold is on sale!! THANK YOU BERNANK
India's (stop the bleeding) gov't,... ?
or Iranian (pacify the U.S. oligarchy) gov't,... ?-- why
petro$$$ stays in US$'s when the 'House of Saud' pulls a 1973 redux (ie. 40 year anniversary) in a day or so???
Tyler,
I suggest once again that ZH and other watchdog groups make an effort to find and release the name(s) of trading houses that are responsible for these large block futures trades, which are designed to move/corner/slamdown markets. 'Speculation' on who is responsible for these market moving events just doesn't cut it. The pressure to release names needs to come from watchdog groups and the private market. Also, producers and hedgers that trade these markets may decide for themselves not to going forward, and may even decide to start their own exchanges to avoid the manipulation that exists.
This is coming waaayyy late, but does noone notice that the price moved only 20lousy bucks?
2m oz sold to someone(s) at 20 bucks under the market.
If 2m oz only clears 20 bucks worth of orders...