I think the Cartel is trying hard to set up a double top in silver. IF they can drive it lower today, and then flood the market with paper contracts on Monday, then they will accomplish two goals. They will take some of the profit out of the futures contracts and they may set up a technical sell signal for the traders.

I have read countless times how the PM bull market was over because silver did not confirm the gold rise to new highs. Of course that is pure nonsense but some people absolutely refuse to accept that the metals trading is entirely manipulated from top to bottom. And if you conclude that the performance is just the free market doing its thing, then the chart formations look scary to these traders. They book profits and move to the sidelines, which is exactly what the Cartel wants them to do.

On the plus side, I think silver is trading the way it is because the physical supply is getting thin. I think many of those who are buying futures contracts now are NOT traders and they are involved because they want to take physical delivery. Therefore, if I am right, any selloff that can be manufactured here would be very temporary indeed. You cannot cure a shortage of metal by issuing more paper promises. And let us recall that the big uptrend in silver since the $17.50 occurred after a major intraday selloff, a sort of capitulation low for the metal. We could see the same trend repeat, with any weak traders bailing out and leaving the Cartel unable to cover its shorts and left holding the bag for strong players that want metal.

cheers!

mike