Sunday, 12 March 2017

Unusual Option Expiry Day..................from Rico. UPDATED

Both Gold and Silver paper spot price rose sharply and then were blatantly capped yesterday.
- It was an  unusual option expiry day at the COMEX.
At COMEX close, Gold was $1153.80 UP $22.20 for the day, and Silver was $15.13 UP 35-cents for the day.
- There were ZERO Gold dealer deposits or withdrawals, and ZERO Silver dealer deposits or withdrawals.
Maybe it was a paper bullion short squeeze, but since the reported COT and other COMEX numbers cannot be believed (their disclaimer implies they do not believe their own numbers), who really knows except for the wise guys?
The only way to "win" at the COMEX is not to play.


Day Trading a Short Squeeze | Tradingsim Video Lessons

Rico writes........

I watched Alton's video, and he'd make most economic professor's today green with envy. It's classic.
- Alton has a 'real world' approach vs. their 'well, in theory' one.
His search bot seems to have keyed on your subject line/tag line, but while Alton is talking large numbers of buyers vs. a limited supply traditional stocks (equities) to drive (squeeze) looking at my old posting, I suspect it regarded the COMEX and Precious Metals which are very different animals.
- That market has a virtually unlimited 'notional' supply of paper contracts being used to drive the price of a very limited supply of physical metal and an increasingly limited number of buyers while central banks and central bank proxies have rather pushed individual players very much aside.
I confess to having lost a lot of interest in today's equity markets because proprietary trading desks via high-frequency trading now having the ability to front-run their own clients, which changes the traditional dynamics, and/or a huge buyer like a central bank or their proxies have the ability to shoulder-aside the large number of buyers otherwise needed in the supply-demand world.
- It is now more a casino with loaded dice and a rigged roulette wheel than the former 'free market' we once knew.
All things being equal, Alton has established quite a reputation for himself (even an old cave mushroom like yours truly knows of him) and I sincerely wish him all the best. I'd enjoy having a beer with him and having a natter one day.
- You should be flattered, Theo, to have drawn his attention. Bravo.

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