Today James Turk told King World News that despite the volatility in the gold and silver markets, the manipulators are losing the war.
“Painting Of The Tape”
James Turk: “We saw something on Friday, Eric, that we haven’t seen in a while. It was a clear example of ‘painting of the tape.’…
For everyone not familiar with that term, ‘painting the tape’ is a form of price manipulation. Here’s how precious metal prices – but particularly the price of silver – were manipulated on Friday, which is often an easy time for price manipulators to paint the tape. And they did.
It happened just hours before the weekend began and about half an hour before the Comex closed for the day. Asian and European markets were already closed. With everything closed or nearly closed, those few traders and fund managers who were still at their desks were no doubt already thinking about the weekend ahead. In other words, hardly anyone was around or paying attention, meaning that liquidity was lacking. In that kind of environment, it takes just a little firepower to move markets. It is prime time to manipulate prices, and that’s what we got.
It Was Blatant
It was a blatant painting of the tape, accomplished during a period of time when the market is least liquid. It only stands to reason that when buyers are absent, it takes less selling to push prices lower. But there is another matter to consider, namely, the knock-on effect. A price drop like we saw on Friday can leave weak-handed longs worrying about their positions when they check over the weekend for Friday’s closing price. So they resolve to tightening up their stop-out points when the market opens on Monday to protect their capital.
As a consequence, a further push by the shorts at the Monday open can easily trigger those stops, giving the opportunity for the shorts to cover their positions. And that is exactly what happened. Here’s the key point though, Eric. When trading closed on Monday, the price of gold and silver was little changed. All that happened was some longs were pushed out of the market on the dip earlier in the day.
Price Manipulators Losing The War
Paper trading and the multiple impact from leverage made possible from futures contracts and other derivatives is used by the price manipulators to force the price of gold and silver lower from time to time. And they are successful by occasionally winning a battle, like they did on Friday. But keep this in mind: From their December, 2015 low prices of $1,046 and $13.63, gold and silver have since risen 20% and 31% respectively. In other words, the bull market in the precious metals is alive and well, and the price manipulators are losing the war.”
***To listen to the powerful KWN audio interview with Larry Lindsey that has now been released CLICK HERE OR ON THE IMAGE BELOW.
***ALSO JUST RELEASED: John Embry – A Catastrophic Endgame Is Rapidly Approaching CLICK HERE.
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