Friday, June 3, 2011

The cheap no more?

2:45 am (Hawaii) Job numbers are out. A grand total of 54,000 new jobs, somewhere around 200k fewer than expected. FAZ exploded from around 46.15 to around 47.45 in a few minutes. I didn't bother. Even with the severity of the miss, some of this (or most) was baked in.

The oddity was in silver's reaction. Silver should be rising along with gold. It is not. Instead of moving up in a straight line, AGQ went from 174 to 179, then sold off in HUGE volume down to 172. Another push higher took it to 174, and then more selling. Meanwhile, Spot Gold bounced from 1526 to 1537, and is holding ground at 1535. That's right, somebody be screwing silver! Shocking.

It's seemingly a coordinated response to keep the price buried at a time when AGQ could easily have run back to 200 within minutes. I'm not long "of it" so I'm not spewing any bias here. But the puppet masters are in full unison here this morning. A real battle of their billions (trillions?) against regular peons.

My metals list is 16% green, possibly an all-time low, and 53% red and 31% neutral. ZSL (19.04) is at the top (+4.9%), though that makes no sense, just like AGQ being at the bottom of the list along with tons of silver plays close by.

SCO is up 3.9% (45.87), and FAZ is at 47.23 (+3.1%). TWM (ultra short Russell) is up 3% (44.31). Slim pickins ... the rest of the green players are gold ETFs that have traded lightly so far.

Update 3:11 am (Hawaii) AGQ finally moving up again, now 178, while ZSL pulls back. It appears the puppet masters have moved off stage. Now it's EXK that's the bottom feeder of the Metals list. I don't think that will last long, but a lot of silver traders have probably been scared off by this morning's action, yesterday's action, all the puppet mastery by the CME Mafia.

It is a bit sad that I gave up on FAZ yesterday so quickly (for a small loss). It's holding its gain (47.32, +3.3%).

Update 3:22 am (Hawaii) AGQ was at right about 175 flat when the jobs report was announced, and it seems to be holding that line through this morning's fluctuations above and below. If it bounces here off 177 on the 1-minute slow stochastics, 175 might be history. Until the puppet show resumes.

Regular watch list is 28% green, 63% red. The greens are mostly bear ETFs/ETNs from TVIX to EDZ to QID.

Zero Hedge: Unemployment rate 9.1% (June 3 2011)
Le Fly: Drawing a line (June 3 2011)


PhArAoH said...
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PhArAoH said...

Let me ask you guys about something I need to get clear on. I heard that the AGQ ETF is someway connected to JP Morgan. Coincidentally JP Morgan has one the largest institutional open interest short position on silver. That is a conflict of interest isn't it?

On top of this if you read the Proshares prospectus it clearly says that investors do not have access to the silver and there is no audit by a 3rd party to make sure the silver is really there.

So when you buy AGQ you are only buying a piece of paper that tracks the price of silver, since you are not actually buying the silver this funnels demand away from the silver market and instead places the demand on the ETF "paper" instruments. It's a smart play from JP Morgan, if all the investors who put their money in silver ETF's instead used that same money to buy physical silver the extreme demand would drive the price up and JP Morgan does not want that since they are shorting silver....

what do you think?