Monday, September 26, 2011

Is JP Morgan Attempting to Extricate Themselves From Short Silver Position Prior to Oct 4th CFTC Meeting?

As silver has now taken out $29, and dropped ANOTHER 10% during Asian market trading this evening, with the LBMA on deck at 3am and COMEX in the hole at 8, the continued ferocity of the sell-off has us starting to wonder whether JP Morgan may be attempting to extricate themselves from the majority of their naked short silver position prior to the possible CFTC  announcement on position limits Oct 4th. 

IF the CFTC are in fact preparing to finally adhere to Frank-Dodd legislation, and enforce strict position limits in silver, JP Morgan would be in a world of hurt (we're talking chapter 7 bankruptcy) had they had to cover their naked short positions at silver prices anywhere near where silver had been trading for all of 2011.
Could it be that The Morgue is currently attempting to pile drive silver as close to their average short position (near $12) as possible before covering the majority of their naked short contracts and going long in time for a CFTC announcement?

( closes in 16 hrs. 46 mins.)
  Metals Date Time (EST) Bid Ask Change from NY Close
Gold Charts  GOLD 09/26/2011 00:29 1608.60 1609.60
Silver Charts  SILVER 09/26/2011 00:29 28.11 28.21