Dave Kranzler: Unusual Trading Patterns In Gold/Silver and Recent Analysis By Eric Dubin

There are no markets anymore – only interventions.  – Chris Powell, Co-Founder & Treasure of GATA

TND Guest Contributor:  Dave Kranzler |

There’s no question right now that the Fed/Treasury/Banks – collectively the Plunge Protection Team – are putting a great deal of effort into keeping a strong bid underneath the S&P 500.  Of course, there’s slippage in other areas (click to enlarge):

The Dow Jones Transports have been in a definitive downtrend now since the beginning of the year.  It is diverging negatively from the heavily manipulated S&P 500.  More important, the DJT represents shipping and transportation companies which are directly tied to any consumption-based economic activity.  If consumers are not spending money, it shows up directly in the bottom line of most of the companies in the DJT.

Eric Dubin of The News Doctors has noticed some intervention slippage in the trading patterns of gold and silver:

“Yesterday’s pop higher after Janet Yellen and her marry band of central bankers pushed expectations for interest rate normalization further out in time.  Gold and silver shot higher.  But what was far more interesting was precious metals trading during the 48 hours prior to the FOMC announcement.  On Tuesday, there was a small raid, but gold and silver reversed and recouped about 75% of the damage within just a few hours.”

There’s no question that the metals are behaving differently right now.  It seems that, rather than having an unfettered ability to push the metals lower – as has been the case for the last four years – the manipulators are working feverishly to keep the metals from streaking higher.   One obvious indicator is the record level of open interest, most of which represents naked shorting, in Comex paper silver futures.

Eric has detailed some other interestingly unusual activity and you can read his article here:  Silver & Gold Update – The News Doctors.

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About Dave Kranzler:

 I spent many years working in various analytic jobs and trading on Wall Street. For nine of those years, I traded junk bonds for Bankers Trust. I have an MBA from the University of Chicago, with a concentration in accounting and finance. My goal is to help people understand and analyze what is really going on in our financial system and economy. You can follow my work and contact me via my website Investment Research Dynamics.  Occasionally, I publish on Seeking Alpha too. As a co-founder and principal of Golden Returns Capital, LLC Mr. Kranzler co-manages the Precious Metals Opportunity Fund, a metals and mining stock investment fund.

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