PDA

View Full Version : JP Morgan Admits Defeat, Cuts Silver Short Position...........



Ardent Listener
13th December 2010, 18:23
http://www.zerohedge.com/article/jp-morgan-admits-defeat-cuts-silver-short-position-proves-millions-conspiracy-theorists-abso (http://www.zerohedge.com/article/jp-morgan-admits-defeat-cuts-silver-short-position-proves-millions-conspiracy-theorists-abso)



JP Morgan Admits Defeat, Cuts Silver Short Position, Proves Millions Of Conspiracy Theorists Absolutely Correct

Submitted by Tyler Durden on 12/13/2010 18:58 -0500


In the latest example that virtually every conspiracy theory is almost always inevitably proven to be fact, the Financial Times reports that JP Morgan, the firm targeted by thousands of "tin foil hat" wearing, conspiratorially-oriented "gold bugs", has cut back on its US silver futures. "JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal." And in what can only be considered an unprecedented victory for all those who have over the past year agitated to putting JP Morgan out of business, most recently spearheded by the likes of Mike Krieger and Max Keiser, by forcing a massive short squeeze on its commodities trading desk, we learn that "the decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past." Of course, the latter is pure and total bulluse the bathroom: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100/ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught. Either way, we are confident that this first unprecedented confirmation that a) JPM is indeed massively short silver and b) that it is hurting bad, will merely redouble efforts to put the world's biggest financial company out of business. Lastly, this means that silver is about to really blast off as the push to really hurt JPM takes off in earnest.

From FT:

The US regulator, the Commodity Futures Trading Commission, announced in September 2008 that it was investigating complaints of misconduct in the silver market, although it did not name specific entities.

However, JPMorgan said in a statement: “It is absolutely incorrect to say or imply that the Nymex, CFTC or any other exchange or regulator has instructed or asked us to reduce our position.” The bank declined to comment on whether it had reduced its position in the silver market.

The price of silver has risen more than 70 per cent since mid-August to hit a 30-year high of $30.68 a troy ounce last week on the back of a surge in investor buying and a rebound in industrial silver consumption.

In two previous reviews of the silver market, the CFTC has dismissed claims of manipulation. Most analysts say there is little reason to believe the price of silver is being systematically manipulated.

But Bart Chilton, a CFTC commissioner, said in October that he believed there had been “fraudulent efforts” to “deviously control” the silver price. He did not name any party.

Publicly available data on individual traders’ positions are sketchy. In a speech last Wednesday, Mr Chilton said that “earlier this year, one trader held more than 40 per cent of the silver market”. He declined to identify the trader.

The CFTC’s Bank Participation Report shows that one or more US banks held a gross short silver futures position equal to 19.1 per cent of the total number of outstanding contracts in early December. In January the share was 30.2 per cent.

The CFTC only reports data for the US silver futures market, a small corner of the global derivatives market for the precious metal, which is centred in London and largely traded via private over-the-counter deals. The data also do not cover transactions in the physical market.

Analysts and traders said that JPMorgan’s large short positions on New York’s Comex exchange, a division of Nymex, were hedges for the bank’s long positions in physical silver and London’s over-the-counter market.

JPMorgan has invested nearly $3bn over the past two years in its commodities business led by Blythe Masters.

And while we revel in the knowledge that the short squeeze is causing massive pain for JPM, we are far more overjoyed that the days of Blythe Masters as head of JPM's commodities desk is coming to an end: any comparable massive admission of weakness by a trader is always and inevitably followed by some very high profile terminations.

maplesilverbug
13th December 2010, 18:36
Attempting to make others believe that this short could be covered without pushing the price of the silver metal to over $100/ounce is an indication of either how stupid JPM believes the general population to be, or just how desperate the firm is to end the ongoing short squeeze onslaught.

But the general population is stupid!

Guess this mean JPM isn't crashing after all. ;)

Jack
13th December 2010, 21:12
What a strange time to be alive. JPM admits it has committed a crime, and in the next breath denies it. Everyone knows they did, and for a very long time, yet no one in authority has the balls to say it openly. Needless to say, the center of this cannot possibly hold for long. Buckle up, it's gonna be a bumpy ride to the moon and beyond.

orlando_wrx
13th December 2010, 22:57
Keep stacking, they're not dead yet! If you haven't prepared with food/water/protection the next couple of weeks is the time to do so.

Matthew Shelley
14th December 2010, 12:07
This is going to absolutely ruin a perfectly good story. Will Mr.'s Butler, Powell, Murphy, and Turk be forced into retirement? Or will some of their followers offer them new positions in other industries?

: )

Matthew C. Shelley
Commodity Broker

As always: Trading in futures and options is very high risk investing. You can lose all or more of the money you invest. Only risk capital should be used.

orlando_wrx
14th December 2010, 13:00
An FT writer says an unnamed source disclosed this info. I met an unnamed person the other day who said he was president, that doesn't make it so. C'mon, an "admission" of defeat now is a simple ploy to convince you that the big moves have already taken place to shake you from your longs, while simultaneously hitting the market with more shorts to drive the price down to where they need to exit. It's the oldest trick in the book...they play dead so they can shoot you in the back when you turn around. Any strategist worth his salt knows this is the time to double your attack.

slowsilver23
14th December 2010, 13:05
I agree with orlando_wrx

S1lverBullet
14th December 2010, 15:39
An FT writer says an unnamed source disclosed this info. I met an unnamed person the other day who said he was president, that doesn't make it so. C'mon, an "admission" of defeat now is a simple ploy to convince you that the big moves have already taken place to shake you from your longs, while simultaneously hitting the market with more shorts to drive the price down to where they need to exit. It's the oldest trick in the book...they play dead so they can shoot you in the back when you turn around. Any strategist worth his salt knows this is the time to double your attack.

true that, this is the deep breath before the plunge.

silverheartbone
19th April 2012, 21:29
{snip}
In the latest example that virtually every conspiracy theory is almost always inevitably proven to be fact, the Financial Times reports that JP Morgan, the firm targeted by thousands of "tin foil hat" wearing, conspiratorially-oriented "gold bugs", has cut back on its US silver futures. "JPMorgan has quietly reduced a large position in the US silver futures market which had been at the centre of a controversy about its impact on global prices for the precious metal." And in what can only be considered an unprecedented victory for all those who have over the past year agitated to putting JP Morgan out of business, most recently spearheded by the likes of Mike Krieger and Max Keiser, by forcing a massive short squeeze on its commodities trading desk, we learn that "the decision by JPMorgan was an attempt to deflect public criticism of the bank’s dealings in silver, a person familiar with the matter said. The person added that the bank’s position in silver would from now on be “materially smaller” than in the past." Of course, the latter is pure and total bulluse the bathroom: as Bart Chilton indicated over the weekend, it is JP Morgan who at one point or another (and possibly very recently) controlled as much as 40% of the silver market, via a massive short. {snip}

Publicly available data on individual traders’ positions are sketchy. In a speech last Wednesday, Mr Chilton said that “earlier this year, one trader held more than 40 per cent of the silver market”. He declined to identify the trader.
{snip}


http://www.youtube.com/watch?v=Wlmry45eI3g

see 40% of silver market cornered... (http://forums.silverseek.com/showthread.php?23375-40-of-silver-market-cornered)