Most Popular
1. It’s a New Macro, the Gold Market Knows It, But Dead Men Walking Do Not (yet)- Gary_Tanashian
2.Stock Market Presidential Election Cycle Seasonal Trend Analysis - Nadeem_Walayat
3. Bitcoin S&P Pattern - Nadeem_Walayat
4.Nvidia Blow Off Top - Flying High like the Phoenix too Close to the Sun - Nadeem_Walayat
4.U.S. financial market’s “Weimar phase” impact to your fiat and digital assets - Raymond_Matison
5. How to Profit from the Global Warming ClImate Change Mega Death Trend - Part1 - Nadeem_Walayat
7.Bitcoin Gravy Train Trend Forecast 2024 - - Nadeem_Walayat
8.The Bond Trade and Interest Rates - Nadeem_Walayat
9.It’s Easy to Scream Stocks Bubble! - Stephen_McBride
10.Fed’s Next Intertest Rate Move might not align with popular consensus - Richard_Mills
Last 7 days
Stocks, Bitcoin and Crypto Markets Breaking Bad on Donald Trump Pump - 21st Nov 24
Gold Price To Re-Test $2,700 - 21st Nov 24
Stock Market Sentiment Speaks: This Is My Strong Warning To You - 21st Nov 24
Financial Crisis 2025 - This is Going to Shock People! - 21st Nov 24
Dubai Deluge - AI Tech Stocks Earnings Correction Opportunities - 18th Nov 24
Why President Trump Has NO Real Power - Deep State Military Industrial Complex - 8th Nov 24
Social Grant Increases and Serge Belamant Amid South Africa's New Political Landscape - 8th Nov 24
Is Forex Worth It? - 8th Nov 24
Nvidia Numero Uno in Count Down to President Donald Pump Election Victory - 5th Nov 24
Trump or Harris - Who Wins US Presidential Election 2024 Forecast Prediction - 5th Nov 24
Stock Market Brief in Count Down to US Election Result 2024 - 3rd Nov 24
Gold Stocks’ Winter Rally 2024 - 3rd Nov 24
Why Countdown to U.S. Recession is Underway - 3rd Nov 24
Stock Market Trend Forecast to Jan 2025 - 2nd Nov 24
President Donald PUMP Forecast to Win US Presidential Election 2024 - 1st Nov 24
At These Levels, Buying Silver Is Like Getting It At $5 In 2003 - 28th Oct 24
Nvidia Numero Uno Selling Shovels in the AI Gold Rush - 28th Oct 24
The Future of Online Casinos - 28th Oct 24
Panic in the Air As Stock Market Correction Delivers Deep Opps in AI Tech Stocks - 27th Oct 24
Stocks, Bitcoin, Crypto's Counting Down to President Donald Pump! - 27th Oct 24
UK Budget 2024 - What to do Before 30th Oct - Pensions and ISA's - 27th Oct 24
7 Days of Crypto Opportunities Starts NOW - 27th Oct 24
The Power Law in Venture Capital: How Visionary Investors Like Yuri Milner Have Shaped the Future - 27th Oct 24
This Points To Significantly Higher Silver Prices - 27th Oct 24

Market Oracle FREE Newsletter

How to Protect your Wealth by Investing in AI Tech Stocks

Gold and Silver Price Manipulation and How They Do It

Commodities / Gold and Silver 2012 Apr 18, 2012 - 03:08 AM GMT

By: Submissions

Commodities

Best Financial Markets Analysis ArticleMarshall Swing writes: This article is about what I call classic gold and silver manipulation by the commercial banks.

I list steps in the commercial process that ends in commercial positions profiting and speculator positions with losses or no gains:


1.Commercial long accumulation
2.Speculator long accumulation
3.Commercial short accumulation
4.High frequency and day trading selloff
5.Commercials selloff of shorts in the money
6.Commercial long accumulation
7.Speculator short accumulation
8.Speculator long accumulation
9.Commercial short accumulation
10.Price settling action

Refer to the gold chart:

Classic gold and silver manipulation begins with speculator long accumulation over an undecided length of time. In the case of this example, gold, the accumulation of speculator longs began early Monday morning until around 5AM Tuesday. Price rose from $1642 to $1647. Near the end of the speculator long accumulation, The commercials begin purchasing (selling) short positions.

Next, what is pegged as commercial high frequency trading (HFT) and day trader selloffs. These players are always focused on short term positions so they buy and sell rapidly trying to make small profits and price can change dramatically. In this case the commercials take the price down and trip the stops of the speculator longs so they are out of the money or even lose money depending on where they bought on the way up.

This is followed by the selling of the commercial short positions for profit near the bottom and rapidly buying long positions at the bottom. Then after regaining their composure the speculators buy shorts thinking they can profit because they perceive the commercials will in fact take the price lower and they are wrong.

Near the next top the commercials are buying shorts positions and the speculators near the middle to top are buying long positions. At the top, the commercials sell their long positions they bought low and then the price settling action begins to run up to the end of the trading day.

What we see on the price ride up beginning Monday morning is little interest in the market from the commercial shorts. They are waiting for a predetermined top so they can take profits and hopefully are able to manipulate the price lower. In this case, while they obtained profits, some of the speculator longs were resolute and the overall price was not lowered significantly at the close of Tuesday afternoon.

Don't count it a victory for the speculators just yet. The commercials will be back to achieve another price low. They have no intention of being out of the money.

Below is the silver action from the same timeframes. We see the same 10 steps, same method of profiting, and somewhat better price lowering than gold.

Refer to the silver chart:

Terminology:

1.Commercials. A handful of traders who have unusually large short and long positions particularly heavy on the short side.
2.Speculators (Large and Small). Institutions and private traders. Some large speculators have large positions but are dwarfed by the commercial positions.
3.Day traders. Private individuals and smaller companies who practice to make a profit during the trading day but who do not usually hold their position after closing.
4.High Frequency Traders (HFT). Those traders for large corporations and particularly the commercial banks who practice day trading with the intent of moving price.

Marshall Swing
The Got Phyzz? Report

© 2012 Copyright Marshall Swing - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2022 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in