more JP morgan news...

[Treetop]

http://www.financialpost.com/news/JPMor ... story.html

an informant says they bragged about controlling the silver markets....

So does anyone have ore info on this? did their manipulations have to be scaled down now that more of a light is on them?

If that is the case...... and they have indeed been keeping the prie n check for some time, where could an untethered silver go????

[Country]

I think they've been covering their shorts BIG TIME since Friday. Why else would we get day after day up $1 or more. It's been said, if they have to cover all their naked-shorts SILVER would go to $107. Say they cover half of their naked-shorts - SILVER AT $60 !!!

[Lemon Thrower]

this is a rehash of stuff Tedd Butler has been writing about for years. Andrew Macgurire (sp?) is an Englishman who testified at the CFTC hearings. King World News had an interview with him at the time of the hearings. the only thing new is that about a weekago someone sued JPM, and then there have been a couple of copycat lawsuits. the lawsuits are based on antitrust, but the allegations are very weak factually about a conspiracy. the ultimate success of the lawsuits is not the point though. there has been intense interest in silver since the suits were filed. the concentration of the shorts is a fact that is self evident. so people looking into this are expecting a short squeeze. we may be in the middle of one right now.

[Treetop]

Yeah i know ted butler. i used to follow him for a few months 2-3 years ago i guess it was...... Id tend to agree with you lemon thrower, i dont think the lawsuits matter nearly as much as people simply acknowledging these possible manipulations.

Its just hard to tell what is actually driving this sharp rise.

[Lemon Thrower]

the price quoted as spot is really the near term futures price. the futures exchanges have margin requirements. most players are highly leveraged. if the price moves against them, there is a margin call. if they don't meet the call, their position is closed for them. so if you are short and don't meet your margin call then the exchange places a buy at the market order for you. the price going up creates pressure to close those shorts, and the act of covering the shorts creates further pressure on the price to go up.

[beauanderos]

Just a guess... but I'd say in addition to the factors already mentioned, new money is coming in from momentum players. You can look at the feedback numbers of bidders who are winning silver bids on ebay and they are mostly newbies. I know these secondary market buyers are most likely not the same individuals who have an effect on the futures market where prices are set, but they could be interpreted as being predictive of a burgeoning trend.

[beauanderos]

the price quoted as spot is really the near term futures price. the futures exchanges have margin requirements. most players are highly leveraged. if the price moves against them, there is a margin call. if they don't meet the call, their position is closed for them. so if you are short and don't meet your margin call then the exchange places a buy at the market order for you. the price going up creates pressure to close those shorts, and the act of covering the shorts creates further pressure on the price to go up.

Thanks for the explanation, LT.... makes it easy to understand

[Lemon Thrower]

reverse happened this p.m. exchange says non-member firms need to increase their margin effective close tomorrow. so folks who are long either need to pony up new money or close some of their longs. closing a long is a sale which drives the price down and creates a counterparty for a short to cover with. the rule change bailed out the shorts this time.

[Rodebaugh]

reverse happened this p.m. exchange says non-member firms need to increase their margin effective close tomorrow. so folks who are long either need to pony up new money or close some of their longs. closing a long is a sale which drives the price down and creates a counterparty for a short to cover with. the rule change bailed out the shorts this time.

So get ready for some more selling tomorrow......right?