I felt this bear raid coming on the tape, from the action I was seeing. I cannot express it better than that.
So I had sold my silver bullion trading position and trimmed back gold, adding a hedge in the first hour of trade.
The hit came around mid-day after the European close as you can see on the 5 minute June futures chart.
One does not drop 11,000 contracts in a ten minute period in what might be called a reasonable trade.
The Dr. Evil Strategy and Some Targets
Will the CFTC investigate, asking the seller why perchance they did this? No, and that in itself speaks volumes.
But the solution is not to try and trade these scandalously under-regulated markets, but instead to hold long term investment positions, preferably as far away from Wall Street as is possible.
I had suggested last week that calls that the 'bottom was in' might be premature. It is in the established playbook to hit the futures hard at least once after an options expiration which we had last week.
The shorts are trapped, especially in silver, and they have powerful friends in the government and the media. There are some very worried people out there. Big things may be coming.
Swiss National Bank Considers Capital Controls
