Somebody sold 102.5 MILLION oz of (paper) silver in just 7 minutes yesterday

swissaustrian

Yellow Jacket
Messages
2,053
Reaction score
0
Points
0
That's a crazy number (nearly the complete silver inventory of the COMEX). And even more crazy: prices barely changed :flail:
I have thre explanations for that:
a) Somebody dumped a bunch of contracts which he needed to manipulate the option expiry settelment price on thursday ... or
b) it was an hft algo gone wild playing bid/ask ping pong (most likely imho) ... or
c) as the silver docs assume below: it was an attempted, but unsuccessful, raid (unlikely imho, because you can crash the market on much lower volume with the right algos, especially when liquidity is drying up during the last hour of GLOBEX trading :doodoo: ...)

Cartel Dumps 102.5 Million Ounces of Paper Silver in 7 Minutes, Yet RAID FAILS!
*UPDATED
If you happen to need to take a trip to an NYC ER room tonight and experience an extraordinarily long wait, The Doc's about to explain why.
Silver has put in a monster rally this week, and much to the cartel's dismay, was preparing to close the week above $35.50 today, preparing a break-out next week that could potentially fill the gap from the September smash to $40, and see silver off to the races back to challenge the all-time nominal highs near $50. Obviously, the cartel stepped in with a massive paper raid to prevent such a bullish weekly close.
That's where things got interesting and likely induced more than a few Myocardial Infarctions today among JPMorgan execs.

Check out the following price and volume chart screen shot on this 1-minute silver chart courtesy NetDania.
Notice the massive volume that began at approximately 14:47, with 4,000 paper contracts dumped on the market in a single minute, followed by 2,500, 1,800, 3,200, 3,000, 2,900, and 3,100 over the next 6 minutes



That's 20,500 paper silver contracts or 102,500,000 ounces of paper silver suddenly dumped on the market in a span of 7 minutes!

Now here's where the collective Myocardial Infarction comes in among JPM execs:

After dumping 102.5 million ounces of paper shorts on silver in 7 minutes, silver fails to collapse into a waterfall decline, and STAGES AN OUTSIDE REVERSAL TO CLOSE THE GLOBEX SESSION BACK ABOVE $35.50!!!

Blythe's View Friday Night



*Update: Please understand that in order to observe this blatant manipulation attempt on your own trading platform, you need to be using a 1 minute chart, showing volume as well as price candlesticks, not just a simple price chart like kitco. (For those wishing for an explanation of candlestick charts, BrotherJohn did an excellent job last night here discussing the cartel epic fail)
The reason this 102.5 million ounce paper raid will not appear on a simple price chart is the fact that the raid failed! Someone (likely Asians) had a paper buy algo IN POSITION FOR THIS RAID, and instantly took the other side of the cartel's massive paper dump, preventing a waterfall sell-off and causing violent and unprecedented inter-minute price swings as the battle took place. After the cartel had expended 102.5 million paper ounces of silver unsuccessfully, the large buyer then bid silver back up to near the day's highs as the paper selling onslaught subsided.
Rather than debating whether or not this event actually occurred (it did), you should be focusing on WHO was the other party that prevented this raid from collapsing the price of silver, and WHY they were ready and willing to take the other side of a cartel dump of paper silver equal to the volume of 15% of annual world supply, or 3 years of US annual supply over the span of 7 minutes!
http://silverdoctors.blogspot.com/2012/02/cartel-dumps-1025-million-ounces-of.html
 

dali lambone

Predaceous Stink Bug
Messages
130
Reaction score
0
Points
0
Between this and Turd Fergusons last post, I'm amped up to see what the week has in store for the metals. Could be a good one! Even Mr. T agrees.... Mr.T, give us the ok symbol if you agree.:mrt:

told ya.
 

pmbug

Your Host
Administrator
Messages
7,423
Reaction score
9
Points
193
Location
Texas
Relax folks, it was just a glitch. Fat fingers!

Last Friday evening, we reported that the cartel had apparently dumped 102.5 million ounces of paper silver in a span of 7 minutes during late afternoon Globex trading- per volume/ candlestick action on the NetDania platform.

With reports swirling around the web early in the week that the CFTC had contacted NetDania regarding the matter, 4 days after our inquiry, we have finally received a response from NetDania regarding the apparent failed cartel raid.

In regards to the trading action last Friday in a 7 minute time-span around 14:50 EST, Net Dania responded:
Thank you for contacting NetDania Technical Support.

Please note that the numbers represent the trading volume from some of the top 5 liquidity providers and cannot be used as a guide line for the total market volume, which is unknown. It gives though some indication of the ongoing market activity.

Regarding the strange behavior of the volume, please note that our data provider encountered an issue in that period, therefore we received bad volume for a short period of time. We are aware of this issue and are working together with the data provider in finding a solution.
...
...
http://silverdoctors.blogspot.com/2012/02/netdania-responds-to-sd-inquiry.html
 

KMS

Moderator
Messages
374
Reaction score
0
Points
0
Location
Cheesehead Land
I'm confused. Which part of the data is in question? The selling of 100+ million ounces or the buying of that 100+ million ounces? All of it? So, we don't know if 100 million ounces just traded hands or if it ever existed at all? Who had 100 million unregistered ounces they needed to try and get rid of?
 
Top