posted on Sep, 4 2011 @ 12:18 PM
Last year, Andrew Maguire, a London commodities trader, blew the whistle on JPMorgan and how they have a massive short position. But what was most
interesting was how he said how JPMorgan signaled they were about to have a Silver takedown, and then traders could piggyback on their short:
As an example, if you look at the trades just before the pit open today you will see around 1,500 contracts sell all at once where the bids were tiny
by comparison in the fives and tens. This has the immediate effect of gaining $2,500 per contract on the short positions against the long holders, who
lost that in moments and likely were stopped out. Perhaps look for yourselves into who was behind the trades at that time and note that within that
10-minute period 2,800 contracts hit all the bids to overcome them. This is hardly how a normal trader gets the best price when selling a commodity.
Note silver instigated a rapid move lower in both precious metals.
The way I understand this is that there's a very short initial drop in which low bids are executed, then a rapid rise back up, followed by a longer
On August 23rd, I was bored and had the intraday chart of AGQ, a double silver ETF I had positions in, up on the screen. It was the 1 minute chart. I
noticed something odd. During a 1 minute timeframe, AGQ dropped almost $200 to $40, then back up again. It could have been a coincidence, but what was
odd was that another big sell-off occurred in silver the next couple days. Now, I didn't realize this until thinking about it today, because I hit my
trailing stop at around $231. I don't remember the exact time, but I remember it was somewhere between 11AM - 2PM on the 1 minute chart
Here's a picture of the daily charts in the relevant timeframe, not the actual chart I was referring to:
I really wish I took a screenshot, but I didn't and now I don't know of any ways of going back to the 1 minute chart on August 23rd. If you know how,
please by all means go back and post a screenshot. I know the sentiment here on ATS is "pics or it didn't happen", but it was there, I saw it. Maybe
it was a glitch, i don't know. All I know is that on TDAmeritrade's Trade Architect platform, there was a massive drop on the 1 minute chart in 1
minute, a spike back up to a slightly lower price, followed by a gradual sell-off the next couple days.
edit on 4-9-2011 by mossme89 because:
(no reason given)