Yesterday gold dropped $ 15 per ounce in less than one minute.  Silver was hit at the same time.  Later it was disclosed that a trader may have "fat fingured" 7,500 contracts of gold.  I think it more likely that this was another attempt by the bullion banks and FED to knock the gold and silver markets.  It would appear that China or "other" entities were there ready and waiting and it did not take long for gold to recoup the losses.  This action should be reflected in the COT reports on Friday and it will be interesting to see what comes out.  If we see a large increase in the bullion bank short position it would indicate to me that they got stuffed in their attempt to knock the market and that the buyers have put a floor under the market.  The alternative in my mind is that they cover the shorts they put yesterday on by close of business today so that the COT reports do not pick up any useful information. Stocks are strong today and I am putting on a short stocks long silver position by buying AGQ and FAZ.

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