Silver Whistleblower Interview on King World News
Well from a technical point of view, according to this chart maybe it will? A lot of stars are aligning on this one.. The CFTC hearing.. The Beijing put.. And the tiny physical market itself.. And many other reasons iam sure..
In my annual forecast for 2010, I said: “We need to start thinking about silver hurdling above $50. If it doesn’t happen in 2010, this important event – which is unimaginable to many – will I expect happen in 2011.” The following chart suggests that my forecast is still on target.
Silver has formed a huge accumulation pattern. One could even make the case that it is a reverse ‘head & shoulders’ pattern, with two shoulders that are shallow compared to its deep head. The right shoulder is now being completed, and the pattern will manifest its bullish significance when silver climbs above the neckline around $20.
Looking at it from a pure technical point of view, this pattern can forecast silver’s price target. The difference from the neckline to the bottom of the head is about $13.50. When this difference is added to the neckline, the near-term objective on the breakout is $33.50. In other words, the upside breakout from this pattern could be breathtaking.
Check out the chart on this link
11:45p ET Thursday, April 1, 2010
Dear Friend of GATA and Gold (and Silver):
King World News today received more detail about yesterday’s attack on its Internet site, which happened soon after the posting of Eric King’s half-hour interview with GATA Chairman Bill Murphy, board member Adrian Douglas, and your secretary/treasurer about last week’s hearing of the U.S. Commodity Futures Trading Commission.
The major Internet hosting company that maintains the King World News site reported to King World News: “Your hosting account is the target of a distributed denial of service attack. To protect the network resources, we have temporarily placed your Web site behind a network filter. Once the attack has ended, service will be restored to normal. … Computers were attacking your account.”
Wikipedia says a distributed denial-of-service attack “is an attempt to make a computer resource unavailable to its intended users. Although the means to carry out, motives for, and targets of a DDoS attack may vary, it generally consists of the concerted efforts of a person or people to prevent an Internet site or service from functioning efficiently or at all, temporarily or indefinitely.”
… Dispatch continues below …
Also from “Ted Butler” from King world news. Tells of the silver commercials positions.Next week is big.
hmm.. the K.W.N “DDOS attack” might be simply server overload… media files are pretty heavy.. and with a huge spike in interest…
didn’t someone mention firing their webmaster recently… ?
Thank you for expaining these matters. I had already seen the story and video tapes of the hearing, and later listened to both King World News interviews. I am not familiar with the futures markets. I understood that McQuire proved that prices were being manipulated, but I couldn’t evaluate what was being presented on King World News about the hearings.
I believe your explanation that GATA doesn’t know what they are talking about. But if that is so why didn’t McQuire the trader object to the incorrect things Adrian and King were saying in the first interview? (McQuire wasn’t in the second interview with the three GATA guys.)
You seem very knowledgable about the futures markets. How did you acquire this knowledge. Are you a pro or a long-time player?
Again, thanks for putting this into context for us.
As I recall the two interviews, the most ridiculous statements made by GATA were in the 2nd interview, in which Maguire did not participate. I don’t recall exactly what was said in the first one (with Maguire) so not sure whether there was anything he should have objected to. If there was my guess is that he elected not to correct GATA because it would have made his new friends there look bad.
The problem here is that when you are dealing with a big powerful establishment like Wall Street, your arguments have to be impeccable and factual, else the opposition will pick out the (perhaps small) part of your argument that is factually inaccurate and have a field day using it against you in a discrediting PR campaign. I fear that the Wall Street banks will use the transcript of that GATA interview with Eric King in a future official hearing, to thoroughly discredit GATA as a bunch of incompetents who should not be listened to. And GATA gave them plenty of ammunition to achieve exactly that goal.
The irony here is that GATA is in posession of rock solid evidence that the metals markets truly are being manipulated. The last thing they can afford is to loose credibility by making inaccurate or exaggerated statements. The stuff about “illegal naked short positions” was obviously written by someone who was completely ignorant and didn’t understand the market. But in fairness, that someone was Ron Kirby, not GATA. The nonsense about fraud and the supposed significance of Jeff Christian’s testimony as “evidence of 100:1 leverage” or “a Ponzi scheme” were indeed from GATA, and I fear those statements will come back to haunt them.
There is actually a legitimate point GATA could be making here. In reaction to Jeff Christian’s testimony, they might have said something like “It’s important to recognize that as Mr. Christian has admitted, only a very small part of the metal futures market is settled through physical delivery, and the market is therefore vulnerable to a physical bullion availability crisis if, for some reason, more speculators began taking physical delivery as opposed to closing out their positions for cash settlement prior to contract expiration”. That truly is a significant point that should be understood, although one could counter-argue that the same is true in most futures markets. But the statements about Christian’s testimony amounting to “admission of 100:1 leverage” or “fraud” were just plain ridiculous.
As to why Eric King didn’t call them on it, my guess is he didn’t know any better than they did. I have a lot of respect for Eric King’s interview style, but it’s mostly about giving his guests a chance to say what they have to say. Unlike (for example) Larry King, he’s not the kind of interviewer who customarily challenges his guests assertions or makes them substantiate their arguments. That said, I’m still disappointed that so many people in the blogosphere are lauding these interviews without critically evaluating what was said.
Another critical point that was missed in this GATA exchange is that the scenario they allege of “What if the longs all demanded delivery at once?” simply isn’t realistic. The primary reason that metals traders use the futures market in the first place is the leverage it affords. You can control a million dollar gold or silver position with only $100k of actual money to use for margin. Yes, you have the option to demand physical delivery of that million dollars worth of gold or silver at contract expiration. But the way you assert that option is to pay up the remaining $900k beyond your initial margin! The vast majority of metals traders don’t have the cash to take delivery on their contracts, so the scenario GATA is alleging is bogus from the get-go.
And no, I’m not a pro – I’m a private investor. But I do trade the futures market on what amounts to a full-time basis and therefore understand the basics of how the market functions.
p.s. Plato1965, I think the DDoS attack was probably legit, but that notwithstanding, Eric King should still fire his idiot webmaster immediately!
Good questions Erik. Although I think that there is a huge issue with people in denial, turning a blind eye, refusing to acknowledge very uncomfortable things, if one is not diligent, then you can easily get carried away and start seeing issues that plainly don’t exist.
Dilligence works both ways.