This page has been archived and commenting is disabled.
The Memorial Day Gold Massacre - When HFTs Forget The World's On Vacation
As the rest of America began to relax last Monday with a patriotic beer in their hand and a never-forget-hotdog stuffed in their mouth, the machines that run the gold manipulation market appeared to forget that the world was on vacation. The WTF moment that we described here, appears - thanks to Nanex detailed analysis - to have been the actions of yet another rogue HFT algorithm roller-coastering through an after-hours order book in gold futures. Un-rigged?
HFT Roller Coaster Algo Runs in After Hours Gold
1. June 2014 Gold (GC) Futures Top and Depth of Book.
The cumulative size of orders in explodes from a normal 250 to over 2,500 contracts and most of this size is at the top of book (best bid/ask).
 |
 |
2. June 2014 Gold (GC) Futures quote spread.
Note the wild price oscillation between $1275 and $1320.
3. June 2014 Gold (GC) Futures trades.
Trading stops at 13:00
4. June 2014 Gold (GC) Futures quote spread - Zoom 1 of Chart 2.
5. June 2014 Gold (GC) Futures quote spread. Zoom 2 of Chart 2.
6. June 2014 Gold (GC) Futures Depth of Book.
7. June 2014 Gold (GC) Futures Depth of Book.
8. June 2014 Gold (GC) Futures Depth of Book.
So while the world shrugged it off as yet another fat finger, it was real orders, not shitty data - from an HFT algo gone wild... welcome to the new unrigged markets...
»
- 26030 reads
- Printer-friendly version
- Send to friend
- advertisements -
You've heard about "Belgium" right
Now here's the "free" Market.
They're not trading gold.
They're trading unbacked virtual gold instruments.
The London and NY markets are fake. If you want a real market look at the Shanghai Gold Exchange where you have to deposit a bar in the SGE vaults before you sell a contract.
Those paper traders are all such suckers. When the deliverable runs out, and the music stops, they are all going to be sad puppies.
They're really going for it. At this stage I'm just gritting my teeth and selling various possession I never use on eBay. I'm damned if I sell an ounce of physical except as a last resort. Who knew they could suppress the price this long? They're cunts, but you have to take your hat off to them*.
*before whizzing it at their face and they discover the brim is lined with razor blades, of couse.
Everyone needs to keep one thing in mind
"If you dont hold it - YOU dont OWN it"
Papper ends up being A$$ wipe at some point down the road
Physical is for keeps
The SGE is fascinating. I get it that it is in yuan, but it is still a little difficult to sort out. Is the Au now at 200+ per ounce prices? They don't give a lot of data about what is what there. Do you get it enough to provide a primer?
Follow this website: http://www.ingoldwetrust.ch/chinese-weekly-gold-demand-highest-since-late-february-787-mt-ytd
thank you!
The SGE is fascinating. I get it that it is in yuan, but it is still a little difficult to sort out. Is the Au now at 200+ per ounce prices? They don't give a lot of data about what is what there. Do you get it enough to provide a primer?
Oh wait, isn't june 1st a bonus day for traders?
The really frightening thing is, that this can go on longer than most people can stay liquid.
If you think it over carefully, there is no natural stop to this in the normal sense of the word. The future contracts are for all intends and purposes paper only. As long as no physical gold is required at settlement, unbridled money printing and FED stops will allow this scam to continue. Gold is the warning sign that things are falling over the cliff, but gold is tied forced to the ground under a heap of paper claims.
You might as well sell land on the moon. There is no connection with anything going on on earth.
How, then, will this stop?
By a panic, a la "the emperor's new clothes", with a loss in confidence generally or a fall in the value of the dollar.
This is mathematically bound to happen, it is not even a question of "if", but one of "when".
With the benefit of other societies having gone this route, we know it can be protracted for a long while, and then end with a bang, or a whimper. But end, it will.
Depending on your outlook on things, this might be a good time to stack up on physical, and maybe a time to get rid of the paper claims, which are going to become worthless. When the system rolls over and dies.
Yes I've heard about that place... and they say all the people living there have brilliant minds, good looking, friendly and very humble.
It must really be a wonderfull place indeed... :)
And then you woke up!
....in Belgium, where he lives.
.....down by the river in a van.
Yes, these quote changes are odd but TRADES did not occur at these extremes. The actual price of gold never fluctuated like this. The high that night in GCM4 was ~$1,294.00 - not $1,320 followed by a "massacre." Morever, $1,275 didn't trade until there was an orderly trend down into May 27th, shortly after the open.
These were just wild quotes.
Everything is a digital entry, no paper no physical assets. When all developed countries with nukes agree there is digital world government. Today its peaceful.
And yet the HFT still has yet to persuade me to sell the actual commodity. Take the price down to $800 boys, I'll just buy more.
HFTs in PMs are their way of saying sorry for fucking us daily on stocks.
Buy Gold - or Art?
Ironically, in May 2014, the New York Times featured two stories in the same section, on the same day about both GOLD and ART.
One story was about the Ship of Gold in Sea of Blue, "Central America" with an estimated value of ALL recoverable coins and bullion at $100, 000,000.
America's Lost Treasure: SSCentralAmericaThe other New York Times article told readers about the upcoming Art Auction at Christies (Not Chris Christie). The reporters sadly estimated that no modern art would set a new record, but that ONE painting might "fetch" (love that word), about $100,000,000.
Which would YOU rather have? In a meltdown of the world economy, you just can't eat modern art.
Christie's $745 Million Contemporary Art Sale is MostBurn mother-fucker............BURN!
i will be buyin more PHYSICAL Silver this week after the imminent attack on the phony paper price courtesy of the Draghi bullshitfest, the jobs (there aint none) phony print, and the rest of the datapoints proving that DEPRESSION AND THE DOLLARS COLLAPSE RAGES ON....
thank you very much.
Damn...you think it's going down even more....I just bought 46 ozs again on Friday......
yeah i would count on it...
but dont trip...got nothing to do with the real VALUE as u already know...we r dealing with sociopaths and they dont care about appearances or the fact that people like me, you, the Chinese, Russians, and everyone else that understands what REAL MONEY is know its all a ILLUSION...
got 500oz's from a foreign refinery via APMEX on friday (cool fucking 10z bars same size as 1 bars) and gonna dump some more debt coupon dollars for the same amount this week...
bro, hang in there...u r doing the RIGHT thing (liberty) and the SMART thing (protecting the financial welfare of u and urs)....
peace.
I'm one of those unsmart guys who started buying PMs too late. Paid too much and have watched prices drop ever since. I started well after the peaks of AU and AG but still it is depressing sort of. Just bought $2k woth of AG rounds and Maples 2 weeks ago and 2 days later watched the price drop yet again. Hoping my kids don't squander it all after I am gone.
You didn't pay too much. No one in the past 50 years has paid too much.
spot on....
Well, look at it this way.
When you bought your car it depreciated the minute you drove it off the dealer lot and has been depreciating and losing money every day you've owned it.
Its now worth less than when you bought it.
That PM coin may have drop in fiat value since you bought them but in five years it will maintain its purchasing power due to all the hyper money printing the FED is engaged in.
What you are doing is called dollar cost averaging. Don't sweat the drops or the rises, each paycheque just keep buying what % of your savings/investments you've decided to allocate to precious metals.
PMs are mostly a hedge on currency collapse. Most are looking to hold on to them for use when their copper/lead/brass investment matures ;). Look around the world. You really think you aren't going to get a 2008/9 moment where you can sell for a profit or break even?
The people of India have buying gold and silver for mellinia.
The Chinese are buy gold hand over fist.
What do these people know that the idiot westerners have forgotten.
Feel for ya, u are not alone. But if u look at it, only thing you have done is set aside money for later use. Unless u expected quick profits just stick to uour guns. I bought four ozs of Au at 1292 right before Mem Day. Bad move I suppose. But putting savings in something besides US treasuries, stocks or other stuff is nothing to feel bad about. I think in time you will be rewarded.
Stacking is a good way to save money. I've also bought 2 rolls and 4 little gold 20fr leopolds. It just goes to the stack like it always does. Every week a new order, sometimes small sometimes large. Never stopped for over 7 years now.
And when they'll be delivered, my next problem will be storage because now my safe is full top to bottom.
So from now on, I'm only going to buy gold.
And when I ordered them, I said something that made my smile.
I said: Voila, my pension just went up another 10 euro's a month when I'll sell them and reinvest them in a dividend stock when the markets recover in a few decades.
Now 10 euro's isn't a lot, but every month, every year and it becomes a pretty good deal.
When I got to 60 lbs of silver I said. "enough".
Nah ... start buying 100 oz ingots. Buy some mortar and make a barbeque in your backyard with them.
The best way... Hide it in plain sight.
ya it probably will go down farther. Aside from the hits the miners i won will take, i don't care, its all temporary. My LCS pretty much stopped going down. He still charges 23 for ASE, maples, and PHMs. same price for them as will it was a little over 20 an ounce. could have aved a few dollars by ordering some bars from silvertowne instead, but i like cash and carry
Sub $19 ... Commissioner Gordon has lit up the Buy-Signal.
Deflation is coming. Everything will go down except the dollar. Then we'll get high inflation after that.
This is nothing yet, wait until they can quantum transport those orders at insant frequenty.
Instant frequenty alogs is the next big thing, from here to infinity
The system still needs algos to defend the paper economy, else it would slide into oblivion
Zero coupon interest rate swap valuation. You must think we are idiots.
Fuck off Obama and Yellen
So is some trying to say it was
"Market forces at work"
that took gold down?
Rigged - manipulated - fat finger
call it what it is
Corrupt
Opportunity. Go get some.
Haven't the gold bugs already won the war? For most 'things' if the price drops, there is a risk of massive sell-offs. As it stands now, with gold, this will not happen. From here on out, the lower the price goes, the more fervent the buying. In fact, the lower they drop the price, the faster people will buy it up. In short-they are stuck at $1250.
I don't know jack about 'things financial,' that being said; is this not the 'lowest' the price can go now? Aside from the odd "flash dip" now and then, until things finally break apart, have we not found the floor??
The floor for Comex and LBMA paper gold is zero. The price of physical in alternate markets will be something else.
Someday the dollar will sink to zero. Someday interest rates will rise to 5%. Someday the Japanese yen will collapse. Someday gold and silver will trade freely. I don't disagree with any of this, but when I see market moves like these, I wonder if I'll live long enough to see truth finally have the last word.
You worry too much, oldtimer.
I think they can play longer than we can stay sane and/or sober.
Fuckers.
Madame DeFarge is knitting a list containing the names of the evil money changers.
First is Bernanke, followed by Yellen, aka the Ponzi Munchkin.
Get the guillotines ready, because when the sheeple finally see the light (far too late), it ain't gonna be pretty.
Bet you the retards try to blame us greedy stackers for their fail.
repeated post
...been stocking various useful supplies for the past seven years. I will have to begin work on a guillotine. Mighty useful tool and saves a round. 'course I don't mind a righteous Joan of Arc from time to time, the flame is generally free, and the shrieks of those who have engendered such horrific misery bother me none. On the pricey side, picked up a nice firearm over the Christmas holidays, a .408 Cheytac. Given the 3500fps velocity of the 305gr round, normal variables that foil less experienced shooters such as windage, range, and environmental conditions are not much of a factor. A real "point n shoot" at over 1k yards. Great company for the guillotine.
No one cares. Why? Because no one (of any importance) owns gold. Who would own such a relic whose "price" is so easily manipulated? I bet the HFT bots also shaved a few grams from every ounce owned by the few that own.
that was funny...thanks
"kinda like "i just flew into town and boy are my arms tired..."
where will u b performing this routine next...
Same place. Shows on Tues, Thurs and 2 on Friday. Try the veal!
2 drink minimum!
Tip your waitstaff...
dance, Dance, DANCE! MWahaha.
https://www.youtube.com/watch?v=vWz9VN40nCA
the only person that would care about this is some piker holding a CG contract on 200x leverage and gets stopped out..
The people in Belguim look like trolls. I had one as a neighbor while growing up. My mother called him a troll. I called him a troll, the whole family called him the troll. Short guy. Looked like a troll.
I don't care what the weatherman says when the weatherman says it's raining, you'll never hear me complaining.
Whole shaboog smells like FuckUshima fish. . . AND talking about FISH, meet the WIVES, sLagarde, Yellendog, and bowser Mutti Merkel.
Act One, Scene One, 3 hideous witches cooking up a stink.
No offence to the good witches!
Warbots will prevail. Remember your rock and sock 'em robots? Same diff.
On, but wait....David Morgan and all the other "guessers" said we've put in the bottom of both silver and gold. Guess the cartel told his sorry ass!
But, but, price discovery.
What's sadder than hft manipulating a market?
A bunch of self satisfied fetishistas hoarding a yellow metal like it was the milk of their mothers teat.
What's sadder than hft manipulating a market?
No matter how badly gold does, there's some clown with a 43 paragraph treatise explaining how its all a giant manipulation.
And at the bottom of the treatise, a link on how you can buy gold from them.
A Question of London and Western Central Bank's Remaining Gold:
http://winteractionables.com/?p=12153
Much as I enjoy the meme here, I prefer to use a more objective view when attempting to trade paper PMs. Physical is an insurance policy, a completely different concept. I don't see why you can't do both. The below blogger does at least seem to understand the trading side of things...
http://www.traderdannorcini.blogspot.co.uk/2014/05/some-thoughts-on-gold...
Something is Rotten in Denmark.
Hey, I scanned a couple of dealers (they are on Gekko's gold page) and there appears to be a plentiful supply. Good for us cogs in the big wheel. There may indeed be a shortage (xcept in PRC) of GDBs, but right now Joe Cog can grab some cheap insurance.