COMEX TAS Games – Silver Doctors

As gold has fallen from $2000 to $1800, possibly there’s a chance for “somebody” to profitably run this trick in the other way for as soon as?

 by Craig Hemke through Sprott Cash Information

Properly, right here we go once more. The COMEX gold entrance month is because of go off the board and into supply, and as soon as once more, open curiosity has been loaded for optimum value impression.

Let’s begin with one other evaluate of earlier posts on this matter. Right here’s only one hyperlink, the newest article written for Sprott Cash on this topic:

To avoid wasting you a while, what’s Commerce at Settlement?

Nobody of their proper thoughts would use this technique to position an everyday purchase or promote order. As a substitute, the one rationale for accepting any day’s settlement value as your fill value could be should you’re placing on a diffusion of some type. When you’re going lengthy the Jun22 and brief the Aug22, you don’t actually care about value and/or when your commerce is executed. As a substitute, you merely need to seize the distinction between the 2 costs.

Are you with me up to now?

So, in what’s now a repeating development, the usage of the TAS system for putting a large quantity of unfold trades explodes increased over a five-day interval every month. This era all the time begins on or concerning the seventh and concludes 5 buying and selling days later. If a COMEX gold or silver contract is headed towards a supply/front-month expiration, you will notice this surge each time.

At current, it’s the Jun22 COMEX gold that’s headed towards expiration and supply. The contract will go “off the board” on the COMEX shut of Friday, Could 27. Because of this, until you’re planning to make a supply or stand for supply, you’ve received to be out of that contract by that point.

So what occurs in the course of the five-day TAS surge? Quantity explodes increased. On another day, the entire COMEX gold TAS quantity is perhaps between 1,000 and three,000. Through the surge, the TAS quantity often exceeds 30,000—as you may see under within the totals from final Thursday, the twelfth, the place complete TAS quantity really exceeded 40,000!

Once more, this was the fifth and remaining day of this month’s surge that started on Friday, the sixth. The entire TAS quantity of the 5 days mixed was a whopping 187,252 or a mean of 37,450 per day between Could 6 and Could 12. Once more, examine that to the standard/regular TAS. Beneath is similar snapshot for Monday, Could 16:

So, once more, what’s going down throughout these 5 days, starting on or concerning the seventh day on the calendar of every month previous a supply month expiration? *Somebody* or a group of *somebody* is utilizing the TAS system to placed on a large quantity of unfold trades. To see this your self, let’s look once more on the desk from final Thursday with an additional rectangle added for emphasis:

The one rational and logical conclusion from the information above is that these *somebody* positioned almost 21,000 spreads by going lengthy the Jun22 and brief the Aug22. Be aware how the amount numbers are almost similar after which mix to just about equal the entire TAS quantity.

And the final day of the five-day surge was not the one day that we noticed this. It was every single day. For instance, word the similarity to Wednesday, the eleventh, and Tuesday, the tenth:

OK, so now right here comes the vital half. What occurs subsequent? Value will get smashed into expiration. Why and the way?

Let’s say you’re a *Somebody* and your buying and selling desk is sitting on 20,000 of those spreads. How do you make this worthwhile on a constant foundation? You “leg out” the spreads. What does that imply? You summarily dump your expiring longs whereas leaving your shorts uncovered. The dumping of the longs crushes value—not solely of the expiring entrance month however the pending new entrance month, too. As soon as the value has been smashed, you may then work to shut the unfold by masking these contracts you had held brief.

If that sounds complicated, possibly an image would assist. Bear in mind the COMEX calendar: the Dec21 went off the board in late November, the Feb22 went off in late January, and the Apr22 went off in late March.

With that, I believe any goal observer can see what’s occurring right here.

Nonetheless, right here’s a brand new twist to think about. The TAS surge this month has come on the finish of a interval the place COMEX gold has fallen over 10% from $2000 to $1800. Perhaps there’s a chance for the *somebody* to profitably run this trick in the other way for as soon as. Perhaps they leg out the brief facet first and squeeze value increased earlier than dumping their Jun22 longs into month finish?

We’ll see about that. However what’s not debatable is {that a} large quantity of unfold trades is positioned every month in a five-day window, starting three weeks earlier than the present entrance month goes off the board. You could be assured that you just’ll see this subsequent month, too, forward of the Jul22 COMEX silver expirations, the place the TAS surge will run from June 7-13.

However we’ll fear about that subsequent month. For now, simply remember that there proceed to be malevolent forces that handle and manipulate the COMEX gold value, primarily for their very own revenue. This month-to-month TAS abuse is just the most recent weapon they’ve put of their arsenal.