Word on the street is that the negative feedback loop is full gear. I cant understand why they just dont start covering their shorts and get this over with already, days like today are not helping them.
The big argument of the day was this was a liquidation events. For the rooks, this means that a hedge fund, got smoked in another asset class, had his margin call because of the loss, and now turned to the only other asset that is till positive and sells it, very very quickly.
Today's event, in my opinion may have been both. I am still waiting for the data, but it looks like in the COMEX their was an inordinate amount of SHORTING. Not SELLING of Long Positions. So for those of you in manipulation denial, you are WRONG.
Silver was already liquidated in May via 5 margin hikes. This was already done.
Now the argument is- was the GOLD trade liquidated? More likely than silver, 100%. This is where people are getting very very confused. Add the fact in that a rumored Margin Hike was in, and you have the Blythe Green light go to pound this thing down 27% in 2 days with relentless SHORT SELLING. NOT SELLING. Clearly a HUGE difference. FIND ME ANOTHER COMMODITY THAT LOST EVEN REMOTELY CLOSE TO 27% in 2 days.
There are no weak hands left in silver. No one has the necessity to sell it. Again, this already happened in May. The leaves were already shaken.
This brings me full circle to the negative feedback loop created by the same people who short it. The lower silver goes, the more PHYSICAL people are buying. Thus, get ready for more and more and more of this. Down to $25, up to $40, back down to $38, up to $50, back down to $42, up to $75, back down to $45. And each time its gets smoked by 25% in 2 days it will have these three things in common:
a. The majority of the selling happens at 3 am EST when the LBMA opens, which has ZERO liquidity.
b. This selling happens in a COMEX expiration week.
c. The Morgue owned CME hikes margins.
But what happens when on these so called shake outs, they are actually making it easier for China, India, Russia ETC and the rest of the world to buy the fucking dip (physical)?
Just got off the phone with my dealer today, and two others now. They had their busiest days in VOLUME and SALES ever recorded. Usually they say down days like this are dead since everyone is scared.
Good for fucking you America. Finally you are catching on.
Picture has nothing to do with anything, just enjoy it.