The commercials have been covering their short positions and the local traders are all short at this point. All of the guys who were long and vulnerable at the highs, are now short and vulnerable and this exactly what we need to make a bottom.
These momentum traders ran into a very large sovereign order near the $1,680 area. When gold broke through $1,680 there were layered physical orders. Over 40 tons of physical gold were filled below $1,680....
These physical orders increase exponentially in size going all the way down to $1,650. The bullion banks know that these orders are down there, but obviously it’s all about where the lines cross. So, as I said, these bullion banks are covering like crazy right now."
These momentum traders ran into a very large sovereign order near the $1,680 area. When gold broke through $1,680 there were layered physical orders. Over 40 tons of physical gold were filled below $1,680....
These physical orders increase exponentially in size going all the way down to $1,650. The bullion banks know that these orders are down there, but obviously it’s all about where the lines cross. So, as I said, these bullion banks are covering like crazy right now."
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