As we at The Daily Economist have continued to say over and over in the investment space, there are no markets, only manipulations. And whether it is the Fed offering trillions in cheap money for insiders to buy back their stocks, the Exchange Stabilization Fund buying S&P future and the Yen to trigger algo traders, or the bullion banks naked shorting the precious metal markets, the only way to trade in today's world is to go with the manipulators and not use technicals or fundamentals.
Thus it should have come as no surprise on April 18 when in a matter of seconds, a bullion bank dumped over $3 billion in naked short contracts at the same time the dollar fell below 100 on the index, and where gold was working its way towards $1300 per ounce.
While the dollar index tumbles to its lowest level since days after the electiom, someone decided this morning was an opportune time to dump over 22,000 gold futures contracts (almost $3 billion notional) sparking a quick plunge in the precious metal. - ZerohedgeInterestingly, the short position at the Comex had actually fallen to its lowest levels since the elections as gold and silver crossing over their 200 day moving average spelled a strong buy signal for the commodities. But with today's dumping, short contracts are back up to over 68,000.