Thursday, March 29, 2012


                                           This IS Important

Sooner or later the beans had to be spilled. I mean, you can’t keep this stuff a secret forever can you?

I am referring of course to the blatant manipulation of gold led by the U.S. Government and their lapdog institutional hacks JP Morgan [JPM] & HSBC [HongKong & Shanghai Banking Corp].

Two excellent articles, yesterday and today, over at prove my point. Below are the two links in case you missed them:

Although I have known for years, and have witnessed first hand in the gold trading pit, the blatant manipulation of prices, I didn’t really know exactly the extent of the numbers.

In a nutshell, gold has risen approximately 590% in the last 11 years; if you had simply bought gold at the U.S. open and closed your position at the U.S. close of trading you would have lost 70% over this 11 year period.

In this same 11 period, if you had been long from the Asian open through the European session until the U.S. open AND then gotten short from the U.S. open until the close where you liquidated the short position, you would be up over 5,000% !!

How many of you knew this?

For me, it perfectly explains the “Lemmings in Asia” phenomena, and why my algorithm works so well the vast majority of the time gold rises. I will be the first to tell you, and I have said this in the algorithm manual, that my algorithm has a very definite long bias.

I get emails all the time asking me why I start trading gold at about 11 PM or Midnight [Chicago time]. This time is about half way through the Asian session and goes from there. And this data also helps explain why so many of the algorithm profits come in the early AM hours of the U.S. time zones.

The second document talks about the algorithms the government uses to initiate their manipulation. Fascinating stuff and I highly recommend you read both documents closely.

Both JPM & HSBC have historically held extremely large short positions in both silver and gold futures and options. They both regularly exceed speculative position limits established by the CFTC [that everybody else has to respect] but nothing is ever done about it. The end justifies the means when you are doing God’s work.

Have a good day everyone.


1 comment:

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