beardo
Well-Known Member
its a great time to get in, I can't wait to get paid so I can buy Silver.
Who Here Believes in the Power of the SLA?
- Thread starter beardo
- Start date
Big P
Well-Known Member
Silver Plunge Spreads...
Panic in the Pits: Silver Plunge Spreads to Oil, Copper
Published: Thursday, 5 May 2011 | 4:51 PM ET
By: John Melloy
Executive Producer, Fast Money
A cascading crash in commodities beginning with silver a week ago spread to oil and copper as exchanges took steps to rein in speculation, economic data pointed to a global selloff and big name investors took profits.
Silver [SICV1 35.283
-0.948 (-2.62%) 
] was the first to crack five trading days ago and is now down more than 27 percent since its high last Friday, including a 10 percent drop today alone. The silver panic forced traders to sell other hard assets to raise cash, with the selling spreading to oil and copper over the course of the last two days.
Oil [CLCV1 97.18 -2.62 (-2.63%) ] fell below $100 Thursday, more than 13 percent from its high on May 2. Copper plunged more than 3 percent, extending losses from its high five days ago to greater than 7 percent. Selling in silver intensified this afternoon into the end of open outcry trading as traders borrowing on margin got a tap on the shoulder to pay up under the new CME requirements. Of all the declines, it was the participation of copper in the bloodbath that worried investors most.
HG COPPER MAY1
(HGCV1)
3.9635
-0.022 (-0.55%%)
“I think of copper as a better indicator of economic activity than some of the other commodities,” said Karen Finerman, president of hedge fund Metropolitan Capital Advisors and a ‘Fast Money’ trader. “For example, oil can move on unrest in the Middle East and gold and silver can move more easily on speculation and some of these margin requirements.”
The CME has hiked silver margin requirements five times this month. The moves helped push silver down from within $1 of its highest price ever. Selling intensified this week after the Wall Street Journal reported that big investors like George Soros were taking profits in the metal. Yesterday, it was revealed that Carlos Slim, the richest person in the world, had begun to sell the metal.
But traders kept coming back to the drop in copper [HGCV1 3.9635 -0.022 (-0.55%) ] Thursday as the real reason for concern. Silver, like gold, is used as a store of value and has a history as an actual currency as well. The metal was therefore getting a similar speculative boost based on concern the Fed’s easy money policies are leading to inflation. It doesn’t have nearly the industrial use of copper, which is an essential component in construction.
“Copper is the most important metal when it comes to the economy,” said Dennis Gartman of The Gartman Letter. “Silver? Not so much.”
Weekly jobless claims came in higher-than-expected Thursday, following a disappointing reading on the service economy earlier in the week. A private payrolls report from ADP this week signaled that the official jobs report released Friday could fall short of analysts’ expectations.
“My belief is that we are now in a period of time where the market narrative is changing from a strong, global growth story with a U.S. 2011 GDP bump up to 3.5 percent to now a story of uncertainty over China growth and whether the US can achieve even 3percent,” said Andy Busch, global currency and public policy strategist at BMO Capital Markets.
If copper is signaling an economic double-dip, then the intense selling could spread from the pits of Chicago to the equity trading floors of Boston and New York. History shows copper has often been a leading indicator of the equity market.
“Many bull markets have a copper top,” said Jeffrey Hirsch, editor in chief of the Stock Trader’s Almanac.
Panic in the Pits: Silver Plunge Spreads to Oil, Copper
Published: Thursday, 5 May 2011 | 4:51 PM ET
By: John Melloy
Executive Producer, Fast Money
A cascading crash in commodities beginning with silver a week ago spread to oil and copper as exchanges took steps to rein in speculation, economic data pointed to a global selloff and big name investors took profits.
Silver [SICV1 35.283
-0.948 (-2.62%) ] was the first to crack five trading days ago and is now down more than 27 percent since its high last Friday, including a 10 percent drop today alone. The silver panic forced traders to sell other hard assets to raise cash, with the selling spreading to oil and copper over the course of the last two days. Oil [CLCV1 97.18
-2.62 (-2.63%) ] fell below $100 Thursday, more than 13 percent from its high on May 2. Copper plunged more than 3 percent, extending losses from its high five days ago to greater than 7 percent. Selling in silver intensified this afternoon into the end of open outcry trading as traders borrowing on margin got a tap on the shoulder to pay up under the new CME requirements. Of all the declines, it was the participation of copper in the bloodbath that worried investors most.HG COPPER MAY1
(HGCV1)
3.9635
“I think of copper as a better indicator of economic activity than some of the other commodities,” said Karen Finerman, president of hedge fund Metropolitan Capital Advisors and a ‘Fast Money’ trader. “For example, oil can move on unrest in the Middle East and gold and silver can move more easily on speculation and some of these margin requirements.”
The CME has hiked silver margin requirements five times this month. The moves helped push silver down from within $1 of its highest price ever. Selling intensified this week after the Wall Street Journal reported that big investors like George Soros were taking profits in the metal. Yesterday, it was revealed that Carlos Slim, the richest person in the world, had begun to sell the metal.
But traders kept coming back to the drop in copper [HGCV1 3.9635
-0.022 (-0.55%) ] Thursday as the real reason for concern. Silver, like gold, is used as a store of value and has a history as an actual currency as well. The metal was therefore getting a similar speculative boost based on concern the Fed’s easy money policies are leading to inflation. It doesn’t have nearly the industrial use of copper, which is an essential component in construction. “Copper is the most important metal when it comes to the economy,” said Dennis Gartman of The Gartman Letter. “Silver? Not so much.”
Weekly jobless claims came in higher-than-expected Thursday, following a disappointing reading on the service economy earlier in the week. A private payrolls report from ADP this week signaled that the official jobs report released Friday could fall short of analysts’ expectations.
“My belief is that we are now in a period of time where the market narrative is changing from a strong, global growth story with a U.S. 2011 GDP bump up to 3.5 percent to now a story of uncertainty over China growth and whether the US can achieve even 3percent,” said Andy Busch, global currency and public policy strategist at BMO Capital Markets.
If copper is signaling an economic double-dip, then the intense selling could spread from the pits of Chicago to the equity trading floors of Boston and New York. History shows copper has often been a leading indicator of the equity market.
“Many bull markets have a copper top,” said Jeffrey Hirsch, editor in chief of the Stock Trader’s Almanac.
Big P
Well-Known Member
Fears linger of a new 'flash crash'...
Fears linger of new ‘flash crash’
By Michael Mackenzie and Telis Demos
Published: May 5 2011 18:23 | Last updated: May 5 2011 18:23
In the space of just 20 minutes a year ago on Friday, Wall Street tumbled hundreds of points, dumbfounding dealers, only to rebound sharply. The extraordinary gyration in stocks, dubbed the “flash crash”, stunned investors and revealed gaping holes in the equity market’s structure.
http://www.ft.com/cms/s/0/d18f3d28-7735-11e0-aed6-00144feabdc0.html#
Such a chronic breakdown in the operation of the world’s largest stock market sparked an investigation by regulators, scrutiny from Washington and a flurry of new rules.
Yet one year later, unease lingers that in spite of new safeguards, stock prices are vulnerable to bouts of sudden selling. For all the talk and action, the big concern remains that the Dow could suffer a repeat of last May’s crash.
“We will have another flash crash, yes without question,” says James Angel, associate professor of finance at Georgetown university. “The combination of human nature, markets and technology means that at some point, something will misfire.”
After the flash crash, the Securities and Exchange Commission moved quickly to introduce circuit-breakers, designed to impose a “time-out” whenever trading in a stock causes prices to swing too wildly. It also plans to introduce a “limit-up, limit-down” mechanism to prevent trades outside a certain price band.
EDITOR’S CHOICE
Tom Joyce, chief executive of Knight Capital, says: “The SEC responded in a measured and appropriate way and the introduction of circuit-breakers and soon-to-be-established limit-up, limit-down rules help reduce systemic risk.”
Other SEC changes include the elimination of “stub” quotes – quotes that are deliberately set at a huge variance to share prices by market makers to satisfy their obligation to maintain a two-sided market both for buyers and sellers of a stock.
Still to come are a possible recalibration of market-wide circuit-breakers that were not triggered on May 6 and a real-time “audit trail” to detect disruption.
The confusion surrounding the crash was, some believe, exacerbated by exchanges’ different rules. The New York Stock Exchange, for example, now uses its own circuit breakers, while Nasdaq has its own proposed version. They could drop their their independent efforts once market-wide mechanisms are fixed.
However, such steps, while they have been welcomed, are not intended to address more fundamental issues, including some that were raised by the SEC before the crash. Rather, they are designed, says John McCarthy, general counsel at market maker Getco, “to prevent the exact same May 6 from happening again”.
The plunge in stocks was compounded by some buyers briefly withdrawing their support and turning off computer systems, even though the largest groups, including Getco, remained in the market. Participants such as brokers that match trades internally or in “dark pools”, where orders are matched with prices not revealed beforehand, tried to sell millions of shares in the public market.
This led to thousands of trades being broken, with blue-chip stocks such as Accenture at one point trading as low as one cent amid a dearth of liquidity.
Some say withdrawals from the market are inevitable no matter what changes are introduced. “It is tough to expect someone to step in front of a freight train coming at them,” says Sang Lee, analyst at the Aite Group.
In the meantime, several of the SEC’s safeguards, as well as some of those recently introduced by private operators, could lead to more technological complexity, which in turn could create its own problems, says Alison Crosthwait at brokerage Instinet.
“It means that every firm that builds algorithms has to get really granular. It gets very complicated very quickly, and it’s hard to build strategies and trade efficiently,” she says.
Regulators have discussed creating rules for monitoring algorithms, the computer programmes used by high-frequency traders to deal in fractions of a second, which contributed to the rapid acceleration in selling last May. But these are still in their infancy. While the broader market has not seen a repeat of those 20 calamitous minutes, trading irregularities of one sort or another still occur.
Last week trades in more than 80 stocks and exchange-traded funds on the Nasdaq had to be broken because of a glitch in the system that provides automated quotes for market makers. This week a customer error led to sharp drops in Nasdaq and New York Stock Exchange-listed companies in the after-hours market.
“In a world dominated by technology, there will always be unforeseen technology errors,” says Eric Noll at Nasdaq. “What we should be doing is making sure we have mechanisms in place to make sure those problems don’t cause any serious damage.”
Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
Fears linger of new ‘flash crash’
By Michael Mackenzie and Telis Demos
Published: May 5 2011 18:23 | Last updated: May 5 2011 18:23
In the space of just 20 minutes a year ago on Friday, Wall Street tumbled hundreds of points, dumbfounding dealers, only to rebound sharply. The extraordinary gyration in stocks, dubbed the “flash crash”, stunned investors and revealed gaping holes in the equity market’s structure.
http://www.ft.com/cms/s/0/d18f3d28-7735-11e0-aed6-00144feabdc0.html#
Such a chronic breakdown in the operation of the world’s largest stock market sparked an investigation by regulators, scrutiny from Washington and a flurry of new rules.
Yet one year later, unease lingers that in spite of new safeguards, stock prices are vulnerable to bouts of sudden selling. For all the talk and action, the big concern remains that the Dow could suffer a repeat of last May’s crash.
“We will have another flash crash, yes without question,” says James Angel, associate professor of finance at Georgetown university. “The combination of human nature, markets and technology means that at some point, something will misfire.”
After the flash crash, the Securities and Exchange Commission moved quickly to introduce circuit-breakers, designed to impose a “time-out” whenever trading in a stock causes prices to swing too wildly. It also plans to introduce a “limit-up, limit-down” mechanism to prevent trades outside a certain price band.
EDITOR’S CHOICE
Tom Joyce, chief executive of Knight Capital, says: “The SEC responded in a measured and appropriate way and the introduction of circuit-breakers and soon-to-be-established limit-up, limit-down rules help reduce systemic risk.”
Other SEC changes include the elimination of “stub” quotes – quotes that are deliberately set at a huge variance to share prices by market makers to satisfy their obligation to maintain a two-sided market both for buyers and sellers of a stock.
Still to come are a possible recalibration of market-wide circuit-breakers that were not triggered on May 6 and a real-time “audit trail” to detect disruption.
The confusion surrounding the crash was, some believe, exacerbated by exchanges’ different rules. The New York Stock Exchange, for example, now uses its own circuit breakers, while Nasdaq has its own proposed version. They could drop their their independent efforts once market-wide mechanisms are fixed.
However, such steps, while they have been welcomed, are not intended to address more fundamental issues, including some that were raised by the SEC before the crash. Rather, they are designed, says John McCarthy, general counsel at market maker Getco, “to prevent the exact same May 6 from happening again”.
The plunge in stocks was compounded by some buyers briefly withdrawing their support and turning off computer systems, even though the largest groups, including Getco, remained in the market. Participants such as brokers that match trades internally or in “dark pools”, where orders are matched with prices not revealed beforehand, tried to sell millions of shares in the public market.
This led to thousands of trades being broken, with blue-chip stocks such as Accenture at one point trading as low as one cent amid a dearth of liquidity.
Pause harmony
Leading US exchanges have said that in discussions with the Securities and Exchange Commission they will probably harmonise their mechanisms to pause trading in volatile periods.
The New York Stock Exchange, whose Liquidity Refreshment Point programme halts trading, and Nasdaq, which uses Volatility Guard, say they may withdraw those mechanisms when the SEC finalises market-wide pause rules.
The move reflects efforts by the industry to improve the infrastructure of US equity trading.
There is still intense debate about how to tackle that withdrawal of liquidity. “There is no silver bullet, but to prevent another, new kind of May 6, we’re strong advocates of additional tools like clarifying rules to explicitly state obligations and benefits for bonafide market making,” says Mr McCarthy.Leading US exchanges have said that in discussions with the Securities and Exchange Commission they will probably harmonise their mechanisms to pause trading in volatile periods.
The New York Stock Exchange, whose Liquidity Refreshment Point programme halts trading, and Nasdaq, which uses Volatility Guard, say they may withdraw those mechanisms when the SEC finalises market-wide pause rules.
The move reflects efforts by the industry to improve the infrastructure of US equity trading.
Some say withdrawals from the market are inevitable no matter what changes are introduced. “It is tough to expect someone to step in front of a freight train coming at them,” says Sang Lee, analyst at the Aite Group.
In the meantime, several of the SEC’s safeguards, as well as some of those recently introduced by private operators, could lead to more technological complexity, which in turn could create its own problems, says Alison Crosthwait at brokerage Instinet.
“It means that every firm that builds algorithms has to get really granular. It gets very complicated very quickly, and it’s hard to build strategies and trade efficiently,” she says.
Regulators have discussed creating rules for monitoring algorithms, the computer programmes used by high-frequency traders to deal in fractions of a second, which contributed to the rapid acceleration in selling last May. But these are still in their infancy. While the broader market has not seen a repeat of those 20 calamitous minutes, trading irregularities of one sort or another still occur.
Last week trades in more than 80 stocks and exchange-traded funds on the Nasdaq had to be broken because of a glitch in the system that provides automated quotes for market makers. This week a customer error led to sharp drops in Nasdaq and New York Stock Exchange-listed companies in the after-hours market.
“In a world dominated by technology, there will always be unforeseen technology errors,” says Eric Noll at Nasdaq. “What we should be doing is making sure we have mechanisms in place to make sure those problems don’t cause any serious damage.”
Copyright The Financial Times Limited 2011. You may share using our article tools. Please don't cut articles from FT.com and redistribute by email or post to the web.
beardo
Well-Known Member
It is all a scam, they are trying to buy your silver at a discount.Silver Plunge Spreads...
Panic in the Pits: Silver Plunge Spreads to Oil, Copper
Published: Thursday, 5 May 2011 | 4:51 PM ET
By: John Melloy
Executive Producer, Fast Money
A cascading crash in commodities beginning with silver a week ago spread to oil and copper as exchanges took steps to rein in speculation, economic data pointed to a global selloff and big name investors took profits.
Silver [SICV1 35.283
Oil [CLCV1 97.18
HG COPPER MAY1
(HGCV1)
3.9635-0.022 (-0.55%%)
“I think of copper as a better indicator of economic activity than some of the other commodities,” said Karen Finerman, president of hedge fund Metropolitan Capital Advisors and a ‘Fast Money’ trader. “For example, oil can move on unrest in the Middle East and gold and silver can move more easily on speculation and some of these margin requirements.”
The CME has hiked silver margin requirements five times this month. The moves helped push silver down from within $1 of its highest price ever. Selling intensified this week after the Wall Street Journal reported that big investors like George Soros were taking profits in the metal. Yesterday, it was revealed that Carlos Slim, the richest person in the world, had begun to sell the metal.
But traders kept coming back to the drop in copper [HGCV1 3.9635
“Copper is the most important metal when it comes to the economy,” said Dennis Gartman of The Gartman Letter. “Silver? Not so much.”
Weekly jobless claims came in higher-than-expected Thursday, following a disappointing reading on the service economy earlier in the week. A private payrolls report from ADP this week signaled that the official jobs report released Friday could fall short of analysts’ expectations.
“My belief is that we are now in a period of time where the market narrative is changing from a strong, global growth story with a U.S. 2011 GDP bump up to 3.5 percent to now a story of uncertainty over China growth and whether the US can achieve even 3percent,” said Andy Busch, global currency and public policy strategist at BMO Capital Markets.
If copper is signaling an economic double-dip, then the intense selling could spread from the pits of Chicago to the equity trading floors of Boston and New York. History shows copper has often been a leading indicator of the equity market.
“Many bull markets have a copper top,” said Jeffrey Hirsch, editor in chief of the Stock Trader’s Almanac.
beardo
Well-Known Member
[youtube]i3MXiTeH_Pg[/youtube]
beardo
Well-Known Member
It sounds like you got a great deal, you can keep your Silver in the free lakota bank, if you contribute 100 ounces to their general fund you can have an account for life with no fees.
she will prolly be ok as long as she watches the sugar intake. Won't she be proud of you when you buy her a new house and all the insulin she could want?
beardo
Well-Known Member
I'm going to hope it moves either way up or way down either way I will be happy.
As long as you keep accumulating the Precious metals you are accumulating real wealth, liquid anywhere in the world, universal value. If you have a bank statement that says you have $1 million in the checking account and tomorrow there is some event that crashes the system, those digits on a piece of paper or flashing on a computer screen will have no value. IMO everyone should spend at least 10% of their after tax income on Precious Metals. Silver, if you can handle the volatility and want to make extra, or Gold if you like the stability. Everyone should have both IMO. If you have Physical possession no one can default on you, bank failures don't matter, inflation is hedged.