SILVER – The Most Bullish Story Ever Told. Even JPMorgan Wants Higher Silver Prices
Cook: What’s function in a china marketplace is tough to know right now. Can we facilitate it for us?
Butler: First we contingency know a cost of china is set on a COMEX by dual vast hostile forces. On a brief side are a large banks or traders led by JPMorgan. Four of these large traders are brief 72% of a sum blurb brief position.
Cook: Isn’t that rarely manipulative?
Butler: Of course, we consider it’s grossly illegal, though a regulators lay on their hands.
Cook: Let’s leave that story for another day. Who is on a prolonged side of a china futures market?
Butler: The technical sidestep supports famous as a managed-money traders. They are flattering many computer-driven and conflict to technical trade signs.
Cook: Such as?
Butler: The many critical are a 50-day and a 200-day relocating averages. When a averages are penetrated by a cost pierce to a upside, they buy. When they are penetrated to a downside, they sell.
Cook: Didn’t we only dig a 50-day to a downside?
Butler: Yes, and for a initial time ever a tech supports didn’t sell as many contracts as they have sole in a past
Cook: Why not?
Butler: we don’t know, though if they are not going to sell, we are going to have a cost blast in silver.
Cook: They can still sell can’t they?
Butler: Yes, and they are expected to do so since a large brief traders have always been means to snooker a tech supports into offered by pushing a cost down so it penetrates a relocating averages and triggers their computerized sell programs.
Cook: Then what?
Butler: The large banks make a lot of income and buy behind a lot of their shorts.
Cook: Rinse and repeat?
Butler: For a initial time we don’t know. The numbers are only too big. The large shorts, not including JPMorgan, are out $2 billion in both bullion and silver, a many ever. They aren’t going to go brief that many ever again.
Cook: So are we during an rhythm indicate where a inlet of trade on a COMEX is altered significantly?
Butler: That’s possible. Bear in mind, those large traders are utilizing a marketplace in sequence to reap large profits. Miners and industrial users are ostensible to set prices, not large brief speculators. They’ve gotten so large in bullion and china futures they are a hazard to their possess solvency. It has to finish and we consider that will be soon.
Cook: What happens then?
Butler: The giveaway marketplace re-exerts itself. The low manipulated cost of a past gives approach to something many higher.
Cook: What happens if JPMorgan and a squad insist in their immorality ways?
Butler: Bear in mind that JPMorgan has acquired during slightest 500 million ounces of earthy silver. It’s in their seductiveness to see a cost go up.
Cook: Why aren’t they vouchsafing that happen?
Butler: They’ve been gripping a cost low while they acquire some-more silver. They’ve installed adult during a inexpensive price.
Cook: Are they still adding earthy silver?
Butler: Not now that we can see. we consider they are perplexing to get out of their large paper brief position and are not carrying many luck. It seems like they are doing things to keep a china necessity from happening. They don’t wish a cost to go adult until they have driven a cost of china down to a indicate a technical-fund holders sell to them and as they buy from these tech supports their brief position is reduced.
Cook: You make it sound like JPMorgan is a whole story.
Butler: They are, and a best partial of that is that they wish many aloft prices for china one of these days.
Cook: Is china still a many bullish story ever told?
Butler: More than ever.
Courtesy: Theodore Butler
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