A Fundamental Axiom

          It is axiomatic that, collectively, the players with the biggest positions in a particular market, “make the market.”

          What is perplexing to Deepcaster is how hard it is for some pundits to acknowledge that if the biggest players in a market are, say, a Cartel of Central Bankers (acting through their primary dealers), then the Central Bankers Cartel must, perforce, “make that market.”

          While it does not follow that if The Cartel players are the largest players that they therefore control that market, it does necessarily follow that they are a major force, if not the major force, to be reckoned with.

          Thus, for example, when considering the interest rate market how can we avoid the gorilla in the living room of the $260 plus TRILLION in derivatives reported (as of June, 2006) on the Bank for International Settlements (the Central Bankers bank) website, and thus available to influence the interest rate market?

          Or, considering the crude oil market, what about the $5 trillion plus in derivative positions apparently managed through J.P. Morgan Chase and other primary dealers?  Surely a $5 trillion plus position is of sufficient size to significantly affect the crude oil market.

          And regarding Gold and Silver, what about the $450 billion plus in BIS derivatives which appear to be committed to the intervention in those markets?

For those who wish substantiation of the aforementioned statements, one should certainly visit the Gold Antitrust Action Committee website (www.gata.com) regarding evidence for the manipulation of gold and silver prices.  And for additional information regarding precious metals and for a summary of the Interventional Landscape regarding other commodities and indices, Deepcaster’s October 2006 Letter entitled “The Mega Manipulations - -Juiced Numbers IV:  How the Government Gets The Statistics It Wants, Markets Get Manipulated, Citizens Get Deluded and Worse” is the best overall summary of which we are aware.

          One other note regarding intervention in the gold and silver markets.  What possible reason would there be for J.P. Morgan Chase having a lending arrangement of precious metals shares between it and Oppenheimer & Company other than to have control of those shares as potential “ammunition” to control or takedown the price of precious metal shares at the behest of The Central Banker Cartel?

          In light of the foregoing, Deepcaster believes it is essential not only to review fundamentals and technicals regarding any particular actual or prospective positions, but also to review and consider interventional trends and actions.

          Consideration, inter alia, of these Interventional Trends has allowed Deepcaster to forecast, correctly, in the last two weeks, two profit opportunities - - one in long-term interest rates and the other in crude oil.  The positions recommended by Deepcaster are already profitable on paper and are moving in the direction which Deepcaster forecast.  Deepcaster is also of the view that there is “more to go” in both the crude oil and the long-term interest rate moves which Deepcaster Forecast.  That is, it is our view that these moves have only just begun.

          It is essential to note that, in order to profit from Cartel-engineered moves, one must be able and willing to take both short and long positions.

          Regarding Gold, Silver and the Other Precious Metals, Deepcaster has already issued to its readers a general Forecast for the likely direction of their next major move.  Deepcaster is also close to issuing a Forecast regarding the timing of the moves of these, because the fundamental, technical and interventional indicators are, in our view, coalescing.

          Of course, technical analysis is important and fundamental analysis is essential.  But the fact, for example, that aboveground inventories of platinum and palladium are at multi-year highs is not necessarily determinative of what will happen to the precious metals market.  Interventional Potential is “The Trump Card.”

Thus in considering making any Forecast, it is essential to consider the actual or prospective positions of the biggest players in the markets.

In the case of these four aforementioned markets The Biggest Players by actual or potential position size are the primary dealers apparently acting at the behest of the Central Bankers Cartel.

Thus, Deepcaster enjoins its Readers to remember:  The Biggest Players Can Make The Market and The Market Determines Price.

Deepcaster

February 16, 2007

DEEPCASTER LLC

www.deepcaster.com

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-- Posted Friday, 16 February 2007 | Digg This Article