JP Morgan Races to Construct Defenses Against the Dodd-Frank LawSubmitted by SIERRAHPBT on Wed, 02/09/2011 - 15:25
JP Morgan Races to Construct Defenses Against the Dodd-Frank Law
Last Friday I pointed out that JP Morgan was trying their best to reduce their gigantic COMEX silver short position before the implementation of position limits that are set to go into effect on March 28, 2011. This reduction in COMEX shorts is indisputable as the CFTC's Bank Participation Report clearly shows the US Bank short rapidly falling from an extremely concentrated position:
11/2/10 = 30,760
12/7/10 = 26,332
1/4/11 = 22,658
2/1/11 = 19,706
That's a total of 11,054 short contracts or over 55M oz of SILVER bought in 3 months! Keep in mind that the Hunt Brothers took 5 years to build up a 90M ounce COMEX long position that the CFTC declared manipulative in early 1980's.
I WOULD CALL THIS A MAD DASH TO THE EXIT!
The big question that now hangs over the market is "Can they reduce their gigantic short enough to come in under the position limit threshold?". I really don't think this is possible to do in a situation where they are just covering shorts down to the approximately 7,500 contract level that is needed.