ALERT SLV: Sales Volume to Discovered "Go to Heaven" – 109 Millions of Actions Shorted in One Day!

[Igor Pereira]

If you wanted Friday's forensic test, she just got here. FINRA's official data shows something that defies free market logic.

By Igor Pereira Financial Market Analyst

The volume of short sales (Short Sales) in the Silver ETF (SLV) simply "went to heaven" on January 30. There's no other way to describe it. The graph shows a vertical wall of sales orders that confirms our thesis: the fall was not liquidation of long positions, it was the massive creation of new short positions.

The record volume analysis and why this is "Damage Control".

1. The Impossible Data: 109.078,871 Short Actions

The numbers are grotesque when compared to the average.

• The Record: In a single day (30/01), the volume of Short Sale in SLV hit 109.078,871 shares.

• The Comparison: The moving average of 20 days was only 31 million. The volume of Friday was more than 3x average normal.

• The Meaning: Someone (or a group of "someones") sold 109 million ETF shares that did not have, betting on falling to force the price down.

When the volume of short stays vertical while physical availability does not improve, you are not seeing price discovery. You see desperation.

• Mechanics: They flooded the secondary paper market (ETF) with sales to scare the owner of the physicist.

• The Reality: As we have seen in previous reports, China is paying $163/oz. Selling paper short to $70-$80 in the face of this physical demand is financial suicide, unless your goal is only to survive for another day.

For each stock sold short, there is a guaranteed future purchase (Short Covering).

• The Trap: With 109 million new positions sold created in the market fund, the "fuel" for the next rally has just been stocked.

• Squeeze: As soon as the price goes up again, those 109 million shorts will be submerged. They will have to rebuy these shares at any price, creating a positive high explosive feedback cycle.

I love to watch this. It's the final signal of manipulator capitulation.

My Vision: They spent the "nuclear immunity" on Friday.

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