An extract from Bill Murphy to explain manipulation in a form easily understood.

An extract from Bill Murphy to explain manipulation in a form easily understood.

However there have been a number of occasions within this cycle when these ‘Insiders’ are overwhelmed and we get what one of the Titans of the Industry, Bill Murphy of GATA fame, labels as a ‘Commercial Signal Failure’!

Let me explain further,

I’ve referred to the Commercials on a number of occasions. They are the big Bullion Banks, the Wall Street and City Mile Giants, who use their size and position to often bully the price direction to suit, and will think nothing of throwing thousands of contracts into the Silver Pits within a short space of time, in order to swamp any bids/offers available and thus move the price accordingly. If, as is more usual, the motivation is downwards, then their initial price slam will often trigger an avalanche of automated Stop Orders, which will then trigger further selling, pulling the price down further, triggering further stops etc The correction then feeds on itself becoming self fulfilling, and all as a result of their initial catalytic inducement. Once the price has fallen a suitable distance and they’ve deemed to have squeezed as much juice out of us Main Street Lemons as possible, they then buy back their mountain load of Short Contracts making a tidy profit in the process!