Thursday, August 4, 2011
The Manipulation Makes My Stomach Turn
I don't have the facts yet, but seems we have more margin hikes on the precious metals. Perfect timing as the market hits a critical low. Force money out of the metals so it can flow back into equities. More on this later... Just thinking out loud without all the facts.
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There were not margin hikes on the metals. I received false information, but that is why I mentioned that I did not yet have the facts. Just wanted to follow-up on this...
ReplyDeleteThe selling of the metals likely came as a result of the equities markets selling off so dramatically as traders needed to sell their "safe-haven assets" like gold and silver to meet margin calls on some of their equities positions which got killed today...
From Dan Norcini's Blog:
ReplyDeleteRegarding the drop in the price of Gold, "...part of the reason it was hit so hard at one point in the trading session had to do with unsubstantiated rumors that were floating around that the CME Group was going to be hiking margin requirements on their gold futures contracts. Traders hit the gold market so hard with selling on that rumor that they knocked the price of gold down nearly $40 off its best level of the session. Later on the CME felt the need to address that and denied the rumor was true. That denial led to a counter rally in the gold market which came nicely off its lows only to run into another wall of selling once the neighboring silver market puked along with the downward acceleration in the US stock markets."