Re: Silver
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Message: Re: Silver
Thursday, February 24, 2011
Here We Go Again
A brutal combination of Gadaffi rumors and crude oil margin hikes has given Blythe the opportunity to once again raid the Globex.
This afternoon's meltdown was primarily due to weak-handed longs who have been hanging in, hoping for a short-squeeze, all heading for the exits at the first sign of trouble. Blythe of course, never wanting to miss an opportunity to push price lower, has joined in to create an exceptional opportunity. Here's your chart:
This afternoon's meltdown was primarily due to weak-handed longs who have been hanging in, hoping for a short-squeeze, all heading for the exits at the first sign of trouble. Blythe of course, never wanting to miss an opportunity to push price lower, has joined in to create an exceptional opportunity. Here's your chart:
So, I ask you, what has changed?
Is the silver supply issue suddenly all better?
Did we suddenly discover a couple billion ounces laying around somewhere?
If Gadaffi has been assassinated, does this make the survival of other despotic, Middle Eastern regimes more or less likely?
Did the U.S. suddenly balance its budget?
Are all of the U.S. states suddenly solvent?
Thursday, February 24, 2011
Silver dropping sharply in the low volume aftermarket
Some big entity has come into the silver pit this afternoon and taken advantage of the low volume trading conditions to lever the fall in crude oil prices to go after the downside stops in silver. Based on what is now occuring, they have succeeded.
One other notable thing is now occuring - the backwardation structure in the front three silver month contracts is easing and while it is not yet at the usual contango, it is moving towards that direction. This is significant and bears watching.
Silver has now fallen towards the last level of chart support before $31. If it does not hold near $31.50, it is going to retrace down towards $31. Below that we are back to $30.50
One other notable thing is now occuring - the backwardation structure in the front three silver month contracts is easing and while it is not yet at the usual contango, it is moving towards that direction. This is significant and bears watching.
Silver has now fallen towards the last level of chart support before $31. If it does not hold near $31.50, it is going to retrace down towards $31. Below that we are back to $30.50
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