Evening wrap for the PMs - the day that was , Friday June 7 , 2013..... And for Mon - Wednesday , we may see another bum's rush of selling like we observed today .......keep in mind China has holidays for those days ...... no buy the dip rescue , at least not from China ( but they may go blue light special hunting once the holidays are over Thursday ! )
http://truthingold.blogspot.com/2013/06/more-chart-porn-for-friday-what.html
The smack on the metals will quickly fade and we'll go on to new highs. Unfortunately I afraid to say - and I know I'm right about this - the only "Change" with our Government will be more CHANGE for the worse.
http://truthingold.blogspot.com/2013/06/more-chart-porn-for-friday-what.html
FRIDAY, JUNE 7, 2013
More Chart Porn For Friday - What Happened Today?
(click on chart to enlarge)
The smack on the metals will quickly fade and we'll go on to new highs. Unfortunately I afraid to say - and I know I'm right about this - the only "Change" with our Government will be more CHANGE for the worse.
http://www.gata.org/node/12665
CNBC notes 'mysterious' gold dump just ahead of employment report
Submitted by cpowell on Fri, 2013-06-07 17:52. Section: Daily Dispatches
Submitted by Tyler Durden on 06/07/2013 11:46 -0400
(DCOT Table for June 7, and Legacy COT commercial positioning for data as of the close on Tuesday, June 4. Source CFTC for COT data, Cash Market for gold and silver.) (More...)
(Source: CFTC for US Banks data, Cash Market for monthly gold, GGR. Please note: This graph charts the net short position of U.S. banks in the futures-only report. A negative number is actually a net long position for the banks.)
1:45p ET Friday, June 7, 2013
Dear Friend of GATA and Gold:
Gene Arensberg of the Got Gold Report calls attention to CNBC's report of a burst of seemingly "mysterious" gold futures contract dumping that took place today a fraction of a second before publication of the U.S. government's employment report. CNBC finds the dumping suspicious in the sense of possible leaking of the employment report. But of course GATA is inclined to suspect that there was no leaking at all and that the gold contract dumping was done by the government itself through its bullion bank agents so that the employment report might be perceived by the markets as the government would like it to be perceived, favorably. Arensberg's preface and his link to the CNBC report are posted at the Got Gold Report's Internet site here:
CHRIS POWELL, Secretary/Treasurer
Gold Anti-Trust Action Committee Inc.
Gold Anti-Trust Action Committee Inc.
http://www.zerohedge.com/news/2013-06-07/here-todays-482-millisecond-nfp-leak-and-subsequent-gold-slam-and-trading-halts-trea
Here Is Today's 482 Millisecond NFP Leak, The Subsequent Gold Slam And Trading Halts In Treasurys And ES
On Monday we brought to you proof of a 15 millisecond frontrunning of the Mfg ISM number by what turned out to be HFT clients of Reuterswhich admitted subsequently it had "inadvertently" leaked the number to select clients. However, that was child's play compared to the absolute market farce that happened today which we can visualize courtesy of Nanex, and which impacted gold, ES, and Treasury Futures altogether.
In sequential order: 62 milliseconds before the NFP number a massive dump of gold took place in what can merely be described as yet another of the infamous gold take downs we know so well which however take place just around the time of the London fixing. That it happened right before the NFP number is either an indication of an early NFP data leak reaching "some" HFT traders, or merely an attempt to set the "mood" for further selling by someone who decided that the NFP print would be negative for gold no matter what it was...
August 2013 Gold Futures trades and quote spread.
However, manipulated gold markets are nothing new, and frankly we would have been surprised if they did not happen.
What was more amusing was the action after the NFP release in both the eMini and the T-Bond futures, all of which had to be halted for a whopping 5 seconds until the algos, selling everything at first, got the memo out that good news today was in fact good news, and promptly ramped risk to the moon. Either that, or someone called in a code Red, made it so all selling was literally prohibited, and with the only path of no resistance up, resulted in today's epic melt up on what was initially a very bearish kneejerk response to the NFP print.
First: September 2013 T-Bond Futures trades and quote spread. The deluge of selling hits 482 milliseconds before the NFP release, leading to a 5 second circuit breaker and halting the OTR future contract of the world's largest bond market. Abe would be proud.
Meanwhile in equities, all liquidity disappeared. All of it.
June 2013 ES Futures (eMini) trades and quote spread: the first appearance of the trading halt:
Zoomed in: no trades.
But despite the trading circuit breaker, quotes flooded the system in the 5 second period in which trading was halted:
And zoomed in some more: trades, or lack thereof:
And quotes.
* * *
Thank you Central Planners: not even in 1955 Stalingrad did they manage to break the capital markets (assuming they ever had one) as effectively as you have done.
And now, we look forward to Sunday night in Japan, where we anticipate at least 1-2 bond trading halts on what is sure to be an upside explosion in the Nikkei225, if only until the selloff resumes once again as central banks are increasingly more and more cornered with a dilemma of either breaking the bond market, or stocks.
Finally, if this millisecond response is a glimpse of what happens when not even all the central banks (because now it is a coordinated effort) can hold the market together, then we wish all the best to those who will "sell ahead" of everyone else when the time to sell comes.
http://www.gotgoldreport.com/2013/06/gold-and-silver-disaggregated-cot-report-dcot-for-june-7.html
( C.O.T reflects positions as of Tuesday June 4th - keep that in mind here ! )
Friday, June 07, 2013
Gold and Silver Disaggregated COT Report (DCOT) for June 7
Edit 1: Bulletin. Adds stunning chart of Bank Participation Report for U.S. Banks in gold futures. Reporting U.S. banks report a net long position this month.
HOUSTON -- This week’s Commodity Futures Trading Commission (CFTC) disaggregated commitments of traders (DCOT) report was released at 15:30 ET Friday. Our recap of the changes in weekly positioning by the disaggregated trader classes, as compiled by the CFTC, is just below. This week we are also adding in the net positioning of traders the CFTC classes as “Commercial” in the Legacy COT report.
(DCOT Table for June 7, and Legacy COT commercial positioning for data as of the close on Tuesday, June 4. Source CFTC for COT data, Cash Market for gold and silver.) (More...)
In the DCOT table above a net short position shows as a negative figure in red. A net long position shows in black. In the Change column, a negative number indicates either an increase to an existing net short position or a reduction of a net long position. A black figure in the Change column indicates an increase to an existing long position or a reduction of an existing net short position. The way to think of it is that black figures in the Change column are traders getting “longer” and red figures are traders getting less long or shorter.
All of the trader’s positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.
We also focus on the Legacy COT positioning of traders deemed “Commercial” by the CFTC, which includes Producers, Merchants, Processors and Users, plus Swap Dealers in a single category. The Legacy COT report preceded the Disaggregated COT report and we have tracked and charted it for many years, focusing on the movement and positioning of commercial traders – The “Big Hedgers.”
All of the trader’s positions are calculated net of spreading contracts as of the Tuesday disaggregated COT report.
We also focus on the Legacy COT positioning of traders deemed “Commercial” by the CFTC, which includes Producers, Merchants, Processors and Users, plus Swap Dealers in a single category. The Legacy COT report preceded the Disaggregated COT report and we have tracked and charted it for many years, focusing on the movement and positioning of commercial traders – The “Big Hedgers.”
Edit 1, to add one interesting chart. U.S. Banks Report Net Long Gold Position
In the June 7 CFTC Monthly Bank Participation Report category for U.S. Banks please note an interesting and some might think stunning change. Recall last month that (less than four) U.S. banks reported being 16,781 contracts net short gold futures. As of June 4, (still less than four*) U.S. banks reported a NET LONG position of 29,622 contracts.
So as gold fell from $1452 on May 7 to $1399 on June 4, call it $53 or 3.7%, the U.S. banks flipped from net short to net long by a total difference of 46,403 lots, from 16,781 contracts net short to 29,622 contracts net long. That is certainly interesting and we just about have to put that on the bullish side of the COT ledger, do we not? Here is what it looks like in chart form.
(Source: CFTC for US Banks data, Cash Market for monthly gold, GGR. Please note: This graph charts the net short position of U.S. banks in the futures-only report. A negative number is actually a net long position for the banks.)
*The CFTC does not say how many U.S. banks are reporting when the number falls below 4.
and......
http://silverdoctors.com/gold-silver-cot-report-commercials-remain-most-net-long-in-gold-since-dec-2008/
Commentary :
Large speculator longs increased by 992 contracts and picked up 227 net short contracts increasing their net long position to 26,780,000 ounces, an increase in their net long position of almost 4 million ounces from the prior week.
Small speculators sold off 852 long contracts from their total and covered 152 short positions for a net long position of 15,215,000 ounces a decrease of 3.5 million ounces net long from the prior week.
The silver market was stagnant last week while the real story was in gold.
Commercials dumped more than 10% of their paper holdings!
In gold, traders could not unload open interest fast enough!!
Total open interest decreased 37,940 ounces last week as commercials traders decided to take profits on shorts and the only way they could do it was to sell their own longs. It does not matter that commercials sold their own longs for no profit or even a loss as the shorts they sold are probably very old ones and extremely in the money from many months ago.
The selling action of the commercials generated selling by the speculators and the percentage differences between large and small specs was amazing with small specs unloading contracts at twice the rate of the large specs.
However, if you look at the disaggregated commercials, the swap dealers bought 4,685 new short positions last COT period and that sticks out like a sore thumb and indicates more downside which we are seeing today as gold is down $30 and silver down $1.
No comments:
Post a Comment