Pages

Friday, April 12, 2013

HOW TO CRASH A MARKET



INTRA-DAY NEWSLETTER ~ April 12 2013

HOW TO CRASH A MARKET
Yesterday we reported the critical inventory level at the COMEX and JPM VAULTS. First the FEDs leaked out the FOMC minutes early and compounded the sell off by announcing that CYPRUS would sell 400 million dollars worth of Gold. Cyprus banking sources said no such talk took place.
SO WHAT TO DO NEXT? 
here is only one way out of this. MAKE THE MARKET COLLAPSE and trip up all the stops at 1525. Then ---as the market collapses, STOP THE PHYSICAL MARKET FROM the ability to buy. And how can that happen? Read on for today’s lesson in market manipulation.
Physical inventory drawdown at JPM
Physical Drawdown at COMEX
The selling began last night from 1564. By time we got to COMEX the price was down to 1542. And then the attack began. Wave after wave of selling until it got to 1525.  Then they break down the price and the stops start getting tripped up and the selling accelerates.

THEN – ALL OF A SUDDEN the LONDON PHYSICAL PLATFORM THAT BUYS AND SELLS PHYSICAL GOLD GETS LOCKED UP. THE SYSTEM FREEZES.
What does that mean?
No one can get to the PHYSICAL MARKET TO BUY at these low prices but at the same time, they CAN’T SELL or protect their position.
Meanwhile the futures market continues to drop.
So what happens? The physical market holders begin to panic. How can they protect themselves as they can’t sell either?
There is only one solution, especially during a panic.
THE PHYSICAL market has no choice but to enter in FUTURES AND SELL in order to hedge their physical positions.
From there the MARKET GOES into a free fall as the physical market CAN’T BUY AT THESE LOW PRICES; they can only sell FUTURES TO HEDGE THEIR long physical holdings. Now it gets worse as underfunded players are getting wiped out and now they have to liquidate. The market goes into a total collapse as all the stops below 1525 get tripped up and all the stops at 1499 also as the market tanks to 1490.
I hope you got the picture on how the control boyz forced a major sell off. They LOCKED the physical market platform and they have total plausible deniability. HOW?
THE COMPUTER BROKE DOWN ---it couldn’t handle the traffic and it shut down.
VOILA. The perfect excuse and the perfect scenario.
THE PHYSICAL MARKETS CAN’T BUY -------
Let me repeat that. THE PHYSICAL MARKETS CAN’T. They can only sell futures to hedge their positions.
That completes our lesson for today on how to force a major selloff. You start the ball rolling to where all the stops are and then you bring it down to where all the stops are at the lows and then you SHUT OFF THE PHYSICAL SYSTEM and stop them from buying and at the same time you force them to sell the future’s on top of it.
Now What?
The banks and brokers will be open all weekend to issue all the MARGIN calls. If the money is not received by Sunday night the positions will have to be liquidated. Just when the market is at its lowest liquidity and the longs have had all weekend to think about it and the media has had time to tell everyone that the bull market is over. It should be interesting Sunday night.
Gold chart
The gold collapse went right to our blue line support at 1490 with an exact touch. Rebound resistance is the 1515-1525 area where those who held will try and sell and get out. Additional and now new Strong resistance will be at 1547-1555. While it’s possible that we made the low, it’s best to stand aside. The potential to gap down on Sunday nights open is much too dangerous to try and enter. The trend remains down and it’s best to stand aside and let market make its bottom.
SILVER CHART
Two weeks ago we discussed on the website that silver had broken its long term channel line and had closed below the long term moving averages on the March close. We pointed out how this had happened during the 2008 crash and if we get the same type of reaction now as to then, it would mean the silver market would go to 19 and it would take 8 months for it to get back to 25.
Silver also collapsed today and it also is approaching its next support target around 25.50-25.75. It got as low as 25.95 for a new two year low.
Silver is in the same situation so we’ll see what happens on Sunday night.
 
YOU SHOULD NOT TAKE ANY MATERIAL posted on this BLOG AS RECOMMENDATIONS 
TO BUY OR SELL GOLD OR ANY OTHER INVESTMENT VEHICLE LISTED. 
 Do your own due diligence. 
No one knows tomorrow's price or circumstance. 
 I intend to portray my thoughts and ideas on the subject which may s be used as a tool for the reader. 
I do not accept responsibility for being incorrect in my speculations on market trend. 
 King Regards
Promote Your Blog
Free Blog Directory  

Blog Directory