I'm don't entirely understand how JPM would go about using its newly acquired mega-position in copper to hedge its silver shorts, but that idea is out there -- I got this from Harvey Organ's excellent blog (http://harveyorgan.blogspot.com/) that reports the daily movement of gold and silver on the COMEX. Here's what he posted:

"As many of you pointed out JPMorgan has cornered the copper market while the regulators are discussing position limits today. You cannot make  this up.  We have two sources explaining why JPMorgan decided to corner the copper market:

In Israel, in the major newspaper today, commented on the massive number of shorts in silver that have been accumulated by JPMorgan.  They mentioned that the total short position by the bankers is in excess of 3.3 billion oz.  The newspaper, Globes, the largest economic newspaper in the country stated that the accumulation of copper was to used as a hedge against silver.  And are -------regulators are sitting idly by on this one?"

xxxx Perhaps someone here can take a shot at explaining how JPM would use the copper to hedge the silver? 

If gold moves sideways for roughly another day or two, possibly touching 1400 or so in the process, it might well form out a very nice H&S that would measure down $50-$60. Kind of goes along with the chart that Matt posted today of DZZ which looks like it's setting up. It could play out sooner (if it plays out), but a little more time would make for better symmetry. 1400 with a reasonable stop would be a nice short entry.

WSJ (may need sub)

Rep.  Ron Paul, the Texas Republican who has passionately called for dismantling the Federal Reserve, will be running the panel that oversees the central bank when Republicans take the House majority next year.

Very good piece by Paul Brodsky

Matt -- if you're right on the TBT inverse H&S, and it plays out, you would think that might actually get us a serious correction. Nice chart.

I have been bullish on nat gas stocks, and own some, but would definitely not chase here, and am tightening stops. Along with oil and most other commodities, Nat Gas is looking like it needs to correct. The hourly chart is getting very bear-flaggy. I can't draw a TL on this chart, but you can eyeball it and see that the futures have come right down to TL support. 

Matt -- the alarms are great and thanks for mentioning the reset button -- I hadn't noticed it. Nice.

Watch it here

As Matt always points out, it is only divergence if it plays out. Right now there is potential divergence setting up. Taken along with Rank's post of the shooting star on ABX, it's worth noting.

Matt -- happy to hear you won't be going to the malls -- we can't afford to lose you! Those are dangerous places!

Now I've got to quit procrastinating myself and help the wife too :-)

From Bloomberg:

The Shanghai Futures Exchange, where the world’s top three metals contracts are traded, will increase margins and daily price limits in the latest move by China to curb speculation and cool inflation.

Margins on copper, aluminum, steel wire, gold and fuel oil will rise to 10 percent, the bourse said in a statement. They gain to 12 percent for steel-reinforcing bars and zinc, and to 13 percent for rubber, after the market closes on Nov. 29, it said. Daily price limits for all products will widen to 6 percent from Nov. 30, it said.

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So the CME and the Chinese are trying the same strategy to keep a lid on things. Just saw this, so maybe this is the news that matters to the market today. I hope that they keep raising margin requirements, because if they can knock things down in the ST it will provide some very nice buying opportunities. They will simply transfer the metals from weaker hands to stronger hands over a period of time.

Given that it's always how something reacts to news that tells us something, I am noticing that gold did not go up $50 (it didn't budge) a few days ago when China and Russia had a joint announcement that they would quit doing business with each other in dollars, and today gold is getting hit when this is what is in the Telegraph from London:

"Germany cannot keep paying for bail-outs without going bankrupt itself," said Professor Wilhelm Hankel, of Frankfurt University. "This is frightening people. You cannot find a bank safe deposit box in Germany because every single one has already been taken and stuffed with gold and silver. It is like an underground Switzerland within our borders. People have terrible memories of 1948 and 1923 when they lost their savings."

Maybe it's just a few idiosyncratic days, but worth noting. The potential H&S that Matt has been showing just might play out.

Wishing everyone and your families a very happy Thanksgiving!

The symmetry is not perfect, but it may be good enough to pay attention to. If this is a large, complex H&S, with a neckline around 1330, then it would measure down to about 1230 which would correspond pretty closely with the 200 day SMA.

However, there is an awful lot of horizontal support before we would get there, escpecially at the 1265 breakout.

Watch it here

Obviously it's time to be careful when anything goes parabolic, but FWIW I've read some pieces in the past about how hedge funds had been huge buyers and then huge dumpers during the last uranium bull market. Perhaps that's going on again. I'm a bull on uranium long term, along with Matt and Rank10, but I would not be chasing it.