There was a huge block on the bid this morning that was supporting ECU in the early trading. I do not know if that was taken out in a big trade, or if it was pulled, but the stock dropped about 5 cents in 5 minutes so it looks a bit suspicious. Now you have selling dominating the story as spec traders appear to be throwing in the towel again. I just put a bid in for another 5K at $1.07 and there were plenty of orders ahead of me but it filled very quickly.

Now if I was short this stock, I would be bidding an iceberg here and covering off the shares I was shorting last week in the teens. Pocket a profit and then wait for the next chance to pounce. I do not know if that is what is actually happening, but its what I would do.

I am now holding 10K of traders that I will be selling sometime before May on the next runnup. Maybe silver is in fact due for a major correction back below $30 but I think that would have happened already if it was in the cards. The bullion banks have tried, that much is clear. And if we do get a major selloff for silver, I think the lineup of buyers from short covering and bargain hunting longs would drive it right back up.

I know there are a lot of loudmouths in this market calling for a major reversal in silver, but I do not think they know what they are talking about. They analyse the long interest only, and look at the magnitude of the run this year, and then state its too frothy. However they ignore the overhang of trapped shorts, and the fact that major physical buying is going on in Asia that is completely disinterested in the investment issues that the West are so concerned about. To me this run can go a lot higher yet.

So I will not be surprised if we get lower lows for the juniors here. But I will state that when almost everyone is calling for a correction, that is when the market is capable of pulling off a monster move higher. Just look back to late-2010 and see a clear example.

cheers!

mike