Where did you get this chart? This doesn't look like a normal Kitco Chart? I have not seen anything like it, but it does look like one thing. You have someone (or maybe even the same entity) selling short high and buying low in cycles to bring in the profit difference in order to help back out the short positions off the balance sheet and bring the short positions to a controllable number before it destroys JPM and other shorts.
Not in an economic sense, but as an electronics tech, that's *exactly* what you see when a signal is being intermittently switched/shorted between two different references. Note the lower level is constant, and the same as the flat (earlier) white trace to the right. While the upper level is following a varying signal. So I'd guess this is a computer data representation glitch, in which there are two different sources for the silver price. One is the last price from closed western markets. The other is the current price from still trading Asian markets. Normally the two markets would be harmonized (computers talking to each other), so polling them both would give near identical values. With the holiday, the 'harmonizing' is 'off', so polling the two sets of computers (probably with random timing) gives this effect.
Just a guess.
I wonder if we'll ever see this but much more extreme, as some kind of COMEX default breaks the cohesion?
I got the chart from silverprice.org, interestingly now when you go to the source chart the bar code price action has been squashed and there is a price spike at the 16:00 mark that is much more pronounced than this chart above.
Where did you get this chart? This doesn't look like a normal Kitco Chart? I have not seen anything like it, but it does look like one thing. You have someone (or maybe even the same entity) selling short high and buying low in cycles to bring in the profit difference in order to help back out the short positions off the balance sheet and bring the short positions to a controllable number before it destroys JPM and other shorts.
ReplyDeleteSE
Not in an economic sense, but as an electronics tech, that's *exactly* what you see when a signal is being intermittently switched/shorted between two different references. Note the lower level is constant, and the same as the flat (earlier) white trace to the right. While the upper level is following a varying signal.
ReplyDeleteSo I'd guess this is a computer data representation glitch, in which there are two different sources for the silver price. One is the last price from closed western markets. The other is the current price from still trading Asian markets. Normally the two markets would be harmonized (computers talking to each other), so polling them both would give near identical values. With the holiday, the 'harmonizing' is 'off', so polling the two sets of computers (probably with random timing) gives this effect.
Just a guess.
I wonder if we'll ever see this but much more extreme, as some kind of COMEX default breaks the cohesion?
I got the chart from silverprice.org, interestingly now when you go to the source chart the bar code price action has been squashed and there is a price spike at the 16:00 mark that is much more pronounced than this chart above.
ReplyDeletehttp://silverprice.org/charts/silver_3d_b_o_USD.png