This is the most important comment in that report, and what so few analysts will acknowledge or discuss:

"They can sell a few hundred contracts to get the snowball rolling down the hill in order to get the speculative long liquidation to join in. The commercials will then buy back the contracts that the leveraged long speculators sell in greater quantities than they orginally sold at the outset. This process is then repeated until the longs are flushed out."

Thats it. If you can understand that, then all of the other action in the PM sector makes sense. It comes down to a thorough manipulation that effectively controls the short term trading of the metals, and then therefore the reaction in the juniors.

These people that state the juniors are selling off and then suggest it is predictive of a top in the metals, but refuse to acknowledge manipulation - I have a question for them:

How the fakkk can the shares dictate the metals? Do the PM share owners all have a crystal ball that tells them exactly how the volatile metals will be trading? Is this the one and only subsector in all of history where the majority of traders are actually right about the short term trading direction? No!

The metals have the causal relationship to the stocks. Especially the producers that generate revenues directly from the sale of the metals and therefore the daily spot prices have a link. When you see recurring anomalies of the shares in mining companies selling of significantly and THEN a meltdown in the metals, it is manipulation pure and simple.

Note that the banks drive the metals higher and lower at whim. With this ability it should surprise no one that they would be shorting stocks ahead of the takedowns, and buying juniors ahead of the rally.

More than two years into an investigation, CFTC regulators still have not been able to grasp the simple fact of the above. You can back test this for several years of trading, pull the tickets and see exactly who has been involved with daily precision to run the sector higher and lower. And throw them in jail. But they have no intention of doing so, and therefore we just have to put up with criminals influencing the behaviour of our sector.

If you sell shares during these raids, you are selling to the crooks, and helping them profit.

cheers!

mike