Thursday, May 5, 2011

My Mistake On CME Margin Hikes...

Kudos to a heads-up from a reader of this blog who mentioned this in the comment section and shame on me for assuming the CME is anything but completely sleazy and corrupt:  Yesterday's Advisory Notice noticed contained yet a 5th margin hike, effective NEXT Monday.  That will raise the margins on silver to $21,600. This is truly laughable now.

So it's the FIFTH margin increase in TWO weeks. The good news is that the market is pricing that one in already. So unless they do ANOTHER one, the running of the stops may be over and we should just get the "after-burner" effects of all the morons who watch Fox/CNBC/Bloomberg piling onto the short side because some idiot says it's time to sell.

The 200 day moving average for silver is 28.32. I don't know if we'll go that low but in the past ugly attacks like this end up being 200 dma corrections. Perhaps the physical market will prevent that this time, I don't know. Every mo-mo, fast-money hedge fund trader will be assuming a 200 dma correction so perhaps that's already priced in. We'll know when we know, but these so-called dip-shit experts DO NOT KNOW.

Here's a modest proposal to the Comex:   How about letting the MARKET determine where the price of silver should be?  To claim the U.S. has free markets is just an outright lie - like a lot of other things being propagated by our Government and by Wall Street and by the media.

1 comment:

  1. A lot of people don't like MK but how do you disagree with this assessment of his? So who's determining value in the markets?..the markets or insiders playing to certain interests?...I think we know what that answer is with regard to silver and gold!
    "This is perfect. A Chinese dot-com – trafficking in worthless virtual money – whose demand is manufactured by crooked banks on Wall St. (especially Goldman looking to juice the Facebook IPO) is given SEC protection from sellers (by limiting short-sales) while silver – rising due to huge global demand – and breaking free from the fraud that is Goldman/JPMorgan/SEC/CME is given CME protection from buyers (by raising margin rates). This is a perfect illustration of the fraud that happens when banks like Goldman and JP Morgan act as bankers, market makers, and regulators. Free markets are shredded to make room for the oligarchy. But f*** ‘em, the CME is doing my work for me by committing acts of heinous financial terrorism that is recruiting millions more to the SLA. "
    SEC Steps In To Bail Out Chinese IPO Bubble, Activates Short Sale Rule 201 In Plummeting RenRen