Loading ...The capture, and hold routine
Bill,
The near-daily comatose behavior of the metals after the Crimex opens is a function of cartel algos who basically capture gold and silver buying, and then lock it down. As I have said before algos are efficient killers, having the ability to probe and test all bids and then evaluate the sell pressure required to quell it. The steady, almost daily increase of silver OI shows this is being done. Yesterday’s trading volume, and so far today as of 10:00 am, is, like last week, anemic. If China was absent last week they are apparently still in no hurry to reenter.
The RSI 50-70 zone has become the new normal for gold and silver the past few months. We can’t break down below neutral, but also can’t break out above slightly overbought. Seems about right in a market desperately wanting to go MUCH higher, but being thwarted by a derivatives suppression scheme. The steady increase in silver OI is worrisome. We know how this story typically ends ALL too well. Based on the firm floor beneath the metals however the shorts will be getting FAR less bang for their derivative buck this time around when they cover.
Lumber futures have lost 11%, or $47 mbf in just 5 trading sessions. Lumber also went from RSI 92 to RSI 48 in that time. It was a similar pattern on the way up to RSI 92. We’ve added 3 more limit moves (shooting for 4 today.) since I last reported on the subject. Amazing what can happen when there are no algos capturing, and then holding lumber in a comatose state.