RANTING ANDY: VIDEOTAPE OF GOVERNMENT ALGORITHMS SUPPRESSING SLV

Andy Hoffman

As you know, I have written extensively about GOVERNMENT COMPUTER ALGORITHMS that are present EVERY SECOND of EVERY TRADING DAY in essentially EVERY major gold and silver stock or PAPER proxy. The word “algorithm” may sound complex, and I’m sure they are complex to program, but decidedly NOT to observe. In fact, they are so ridiculously simple to spot, that only a CORRUPT CFTC criminal could fail to do so.

But don’t worry, the only jail sentence EVER imposed in the high frequency (HFT) world was when the Feds were sicked on a trader who left Goldman Sachs and stole its HFT programs. By the way, Goldman’s management later stated ‘in the wrong hands, that software could be used to manipulate the market’.

I have been watching the PM sector every day for the past 9+ years, which is why I’m keen to the EXACT methods of manipulation. For example, gold (until today, although the day is still young) has been up for ELEVEN days in a row, and yesterday not only blew through $1,600/oz for the first time, but closed comfortably above it while silver simultaneously recaptured the $40/oz level last seen just after the SUNDAY NIGHT PAPER SILVER MASSACRE on May 1st. Gold has made this decisive up move based on collapsing economies throughout the Western world, an imminent breakup of the Euro, and of course the heinous U.S. debt ceiling debacle, which in a normal market would have caused gold to SOAR, not just to recapture the $1,550 level defended by the Cartel all year plus a token 5%.

But not gold, which during the entire eleven day span did not have even a SINGLE RISE of more than 1%, the CAPPED level that statistics show has always been the Cartel’s hallmark. Put it this way, over the past decade, a daily rise of even 1.1% is statistically a THREE STANDARD DEVIATION EVENT, i.e. it occurs on less than 2% of ALL TRADING DAYS. And this, in the asset that has outperformed every asset for the past 11 years (12 including this year).

Not to mention yesterday’s “great” day for gold, which in essence (per below) was standard Cartel fare, starting with the immediate smash at the open of the COMEX and the CAP (at 1%) just before 12:00 PM EST, just as gold threatened to go parabolic, which as always held for the rest of the day.

As well as today’s action, where I woke up to read on ZeroHedge that gold is down because “someone, probably the Chinese” decided to buy Greek bonds before a Greek debt offering (I mean, how silly can you get?). Look at the chart of what actually happened (below), and you can see that the real story is gold hit $1,610 and was about to go parabolic when the Cartel came in at EXACTLY 3 AM EST, as always to quell the excitement and try to knock it back below the key, round $1,600/oz level (thus far unsuccessful).

Not to mention, just an hour later the Greek bond offering was priced, and not only was it a catastrophic failure, with yields SOARING to new record highs, but it appears the EC is ready to let Greek have a “temporary” (read, precursor to “total”) default. But let’s not let a good story get in the way of the truth, or change the published news to reflect reality.

http://www.zerohedge.com/article/greek-bonds-collapse-ecbs-nowotny-announces-bank-will-compromise-agree-temporary-greek-defau

Anyhow, the purpose of this RANT is for non-traders to visually see EXACTLY what I have been watching for the past nine-plus years, but particularly since November 9th, 2010, or “D-DAY” as I have referred to it.

On this day last fall, the Cartel experienced SILVER PHYSICAL CRISIS #1, and thus had to step up their manipulative efforts just to keep silver (and thus gold) from exploding, an effort that continues to this day unabated, even on days like yesterday when the sector is up sharply (would have been up a lot more, per the two charts above, if not for vicious, illegal, paper, CAP and ATTACK tactics).

Since GLD and SLV commenced trading in 2004 and 2006, respectively, I have watched these fraudulent vehicles suppressed nearly every second of every day. I would estimate that the ASK SIZE is larger than the BID SIZE 95% of the time, good day or bad, uaually by HUGE amounts. For example, when you see 30,000 shares of GLD for sale (currently approximately $155/share), that’s a whopping $4.7 million worth of a stock, an amount I’d venture that even the largest mutual funds in the world wouldn’t dream of offering all at once, let alone all day long every day during a decade-long bull market. Yet it goes on all day long, and ALWAYS on the ASK side, NEVER the BID.

Since D-Day, I have watched even MORE vicious, MORE predatory computer ALGORITHMS capping these two stocks, plus many of the large-cap miners, intent only on keeping investors out of them and stealing their money. I have written extensively about these ALGOs in recent months, particularly the ones I’ve observed in SLW and SVM, two of the largest pure silver miners, but I’ve never been able to SHOW YOU them until NOW.

Below I present a link to a four-minute video in which a trader shows you the order flow in one of the various SLV option issues. This video, which was shot YESTERDAY, a day in which silver exploded up by $1.25 to roughly $40.50, shows you EXACTLY what I mean. Looking at this data flow, you’d think silver was collapsing, as all you see is wave upon wave of COMICALLY high volumes of offers, while you NEVER see any size show up on the bid.

This is GOVERNMENT PM SUPPRESSION 101, how they have kept gold and silver down for all these years compared to the 10x increase in the domestic money supply and the real inflation rate (not the fudged CPI). It is thus ALL about naked shorting of PAPER gold and silver securities, from options to futures to ETFs to the stocks themselves.

Enjoy!

Blog: silvergoldsilver
Post: Blatant SLV options manipulation caught on video
Link: http://silvergoldsilver.blogspot.com/2011/07/blatant-slv-options-manipulation-caught.html

And one more thing, while I’m at it – if I see one more commentary that gold “needs to correct” because it had a big run, I’m going to SCREAM. Gold just was TRASHED BY THE CARTEL (NOT the market) from $1,558 to $1,475 in barely a week’s time following the Fed announcement (COMPLETELY AS EXPECTED)on June 22nd that they’d continue to print money ad infinitum. Gold has essentially regained that level and added a few token percentage points (as simultaneously the Western World economies collapse), hardly what can be considered a “big move” up, unless of course you’re a part of the Washington/Wall Street/Mainstream Media propaganda team (I guess we should hear about gold being in a “bubble” any second now).

Gold needs to reach $2,500/oz just to get to its inflation-adjusted highs from 1980, and I assure you it could make that move in a heartbeat if the deterioration of Cartel control we have experienced this month accelerates. And that certainly can happen in the wake of all the horrific news going on in the U.S., Europe, and Japan, BTW.

I am GUARANTEEING that level will be reached, likely in the next 12-18 months, as well as silver at or close to $100/oz., for STARTERS. There is NO WAY TPTB will be able to maintain the status quo as the END GAME of the fiat-based world financial system has come upon us, no matter how many shares of GLD, SLV, or SLW they NAKED SHORT with GOVERNMENT COMPUTER ALGORITHMS.

CHARTS ARE MEANINGLESS in rigged markets, and they only thing you should be worrying about is PROTECTING YOURSELF from the ravages of hyperinflation that are likely to start rearing their horrific heads in the second half of 2011.

Andrew C. Hoffman, CFA
Managing Director
San Diego Torrey Hills Capital
B (720) 350-4130
C (917) 324-7602
ahoffman@torreyhillscapital.com
www.babybulls.com