A Rigged Game
Theodore Butler
SilverSeek.com
June 22, 2017
76 years ago, “Joltin’ Joe” DiMaggio was in the middle of the hitting streak of streaks that would come to 56 consecutive games and which has remained a major league baseball record to this day. That season (1941), the Yankee Clipper would bat .408 during the epic streak or more than 4 hits for every 10 at bats. Ted Williams, of the Boston Red Sox, had the highest batting average in 1941, hitting .406 for the entire season.
What would you say if I told you that a batter had hit 1.000 for an entire season? Or that a pitcher threw no-hitters every time he played a game? I’m pretty sure you would say that’s impossible or that something was definitely wrong. And, of course, you would be correct – somethings are too impossible or outlandish to be true. Not just in baseball, but there are limits in almost every endeavor.
Therefore, I wouldn’t blame you if you questioned what I claim is the winning streak of all winning streaks in trading COMEX silver futures. Data published by the CFTC, the federal commodities regulator, indicate that JPMorgan and two or three other large financial institutions, have never taken a loss, only profits on every single silver trading position they have established over the past nine years and, in fact, for a lot longer than that. You can question what I claim all you want, but do yourself a favor and make sure you question me deeply enough – please don’t let me off the hook easily.
Let me first define what I mean by establishing a COMEX silver position and never taking a loss. I’m not talking about high-speed computer day trading (HFT) which makes up the lion’s share of trading volume in silver and just about everything else. I’m talking about positions taken and held for weeks and months before they are closed out. Since JPMorgan and the two or three institutions which together hold the impossibly-perfect trading record in silver have never been net long COMEX silver futures, the trading positions established and closed out without loss, only profits, have all been short positions. If you are always net short on the COMEX, which JPMorgan and the other big perfect traders have always been, you can’t take long positions – only close out or add new shorts.
Therefore, JPMorgan and the two or three other large “never wrong, always right” COMEX traders only trade from the short side; always adding new short contracts first at higher prices than where those contracts are later bought back and closed out at. From studying silver intensely for more than 30 years, I don’t think I would be able to sleep peacefully for a minute if I ever found myself actually short the metal. I think I’d rather go skydiving without a parachute. Given silver’s long history of sudden price spikes, including the spike to nearly $50 six years ago, one would think a silver short position taken by JPM and the others, would end in a loss, at least once in a while. One would be wrong to think that.
Any thought of a baseball player hitting 1.000 or pitching no-hitters for a season is, I admit, far-fetched – that’s why I chose this example. And if it did occur, the only possible explanation would be that the game was somehow rigged. No player is that good, not even Joltin’ Joe or Ted Williams. Likewise, I admit that the thought is far-fetched that anyone could trade silver from the short side and bat 1.000, never taking a loss, only profits, not just for a season, but for nine years and longer.
So let me first show that JPMorgan and a few other traders have achieved what would have to be thought to be impossible and then just how such an impossibly-perfect silver trading record was actually accomplished. Fortunately, both the “what” and the “how” of the perfect silver trading record can be found in official CFTC data, including both the weekly Commitments of Traders (COT) and monthly Bank Participation Reports. I know this is usually where many eyes glaze over, so I’ll try to speak in the simplest terms possible. But please keep in mind that if JPMorgan’s perfect silver trading record could be seen easily, it would have been common knowledge long before now.
The Rest…HERE
