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Strategies & Market Trends : Mish's Global Economic Trend Analysis -- Ignore unavailable to you. Want to Upgrade?

To: patron_anejo_por_favor who wrote (18285)	12/10/2004 10:33:50 AM
From: orkrious	Read Replies (2) \| Respond to of 116555

if you're wondering what happened to the ACF shorts, they were run over by the Receivables Trust, which was filed this morning. I hope you got stopped out.

To: patron_anejo_por_favor who wrote (18285)	12/10/2004 10:54:46 AM
From: mishedlo	Read Replies (1) \| Respond to of 116555

Well it looks a little more clearer why gold and silver capitulated violently on WED.Not only were technicals toppy,but the CBOT has raised margin requirements starting the business day of DEC 9. Obviously the big brokerages knew this before its annoucement and sold known that under capitalised folks would have to liquidate. No headlines announcing this Action. 100 oz Gold contracts went from $900 to $1200 for hedge and maintenance for 5,000 oz Silver went from $1500 to $1750 for hedge and maintenance. This is how they stiffed the Hunt Brothers when Silver was $50 an ounce. Raise hedge to 100%. This is the 3rd hike in two years. I think people are reading too much into another "conspiracy" All CBOT did was raise margin requirements to COMEX levels. They had significantly lower margin requirements. They just brought them up accordingly. As for the Hunt brothers they were insanely and stupidly greedy in trying to corner a market. I just talked about this with the head metals broker at Alaron. Silver normal daily trading range is .20 or so. It went from that to .80. In times of high volatility margin requirements are raised. This is a normal occurrance when volatility increases. Now it just so happens that increased the selling but the exchange was trying to protect itself and that was a normal thing to do. The entire world was looking for the US$ to tank (well not everyone ggg) but nearly. This is what happens when Silver has gone parabolic and it is directly tied to the US$ and the the US$ reverses. Silver has done this before and it is likely to do it again. There was no conspiracy to sink silver IMO. Mish