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Wednesday Night Sell Raid Attempt for Gold

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Right after the China PMI number was released late Wednesday night (here, Thursday morning in China and Hong Kong) we saw a sell raid on gold and silver that looked like this in the beginning. 

We are wondering at 21:15 whether the overly short Swap Dealers can still come with enough firepower to overpower or intimidate the other traders to run their stops, or if the other traders have tuned in to the GGR and understand that the Swap Dealers positioning looks like the graphs below.

SD net gold. Near record net short.

SD shorts gold, extremely high.

SD net silver.  Near record net short. 

SD shorts.  Extreme and near record short silver. 

The Swap Dealers are way short.  Too short.  Vulnerable in our view. 

Do the other traders sense that or know that?  Yeah, and quite a few of them stop by the GGR from time to time too, so they know it. 

Will the other traders, especially the Funds and Other Reportables counter attack if the Swap Dealers attempt to run the table in the weak part of the night? 

Maybe, and if they do it has the potential to become something larger and violent… 

Let’s see when we roll out of the rack in the morning!  Something to look for. 

Good night for now. 

“Ya know, the last time the Swap Dealers were this bleeping short it was 2010 and when they tried to force the issue the last really, really good short squeeze got underway.”
 

 

 


Source: http://www.gotgoldreport.com/2014/07/wednesday-night-sell-raid-attempt-for-gold-.html


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