Monday, December 26, 2011
Gold & Silver Smash Commences with Illiquid Holiday Globex Session Open
The evening (EST) Globex open after the market holiday Monday has provided just such an opportunity for the HFT algos to smash the thinly traded gold and silver markets.
Who needs The Grinch when you have Blythe and her boyz?
Silver was almost immediately taken below $29 to $28.70 on the Globex open, with a vertical price drop through $29. Look for the paper boys to attempt to take out last week's $28.30 support with the LBMA open.
Gold was treated to even more blatant action this evening, with its own vertical waterfall to take out significant support at $1600 . Gold is now consolidating somewhat near $1595, but look for the cartel to keep the pressure on, particularly with any moves back towards $1600.
Posted by The Doc at 10:28 PM