Thursday, May 5, 2011

Market-Manipulation Meme Spreading

In his latest Marketwatch column, Peter Brimelow says that more people are wondering if the gold market is being manipulated now that Richard Russell has jumped on board. Even Dennis Gartman is open to the possibility, albeit with respect to the stock market. Brimelow quotes from a well-known market-manipulation claimant, Dennis Slothower:
Remember what the media present as the most obvious thing to do is really what J.P. Morgan Chase & Co. and Goldman Sachs Group Inc. want you, the public, to do. And last month, crushing the dollar and forcing investors to buy gold and silver at the top of the market gave the primary dealers plenty of liquidity to sell their gold and silver positions into the top of the cycle.”...

“The Fed has played out its hand with this quantitative-easing program and is about to bring the economy to ruin again. We have a government that believes it is their right to pillage and plunder us. The name of the game is delusion (false economy), diversion (OBL) and the division (or plunder) of your wealth.

“If you are holding gold, or any investment for that matter, you now need to have an exit strategy, should that day come. I will repeat that: YOU NEED TO HAVE AN EXIT STRATEGY!

Regardless of whether or not Slothower's claims are true, he does end with good advice. A well-aimed exit strategy would have helped last week.

3 comments:

  1. If my account was big enough to trade $10 a tick, I would have had a field day with Gold. Maybe one day : )

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  2. Not sure I agree with calling it manipulation, Gold bulls and pundits have been preaching 2000 Gold, for J.P. Morgan Chase & Co. and Goldman Sachs Group Inc. to take advantage of an overbought commodity is expected, same for oil, it also took a beating today.

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  3. Myself, I'm skeptical too. If there are manipulators, they're very good at timing their moves. Much better than I'll ever be.

    Part of my skepticism comes from manipulation schemes eventually coming to naught. There've been a lot of market corners that have been busted by a shift in the primary trend.

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