This is only the first hour of trading and it looks like further weakness ahead to repair this damage, but it sure has the look of capitulation today. Bids are just appearing and getting taken right out on every stock I track. People are selling everything here. Perhaps this is just more aggressive shorting and perhaps junior ETFs must liquidate on redemptions, but I have put some very low stink bids on some juniors that were taken out within 5 minutes today. FR is down $2 on the day, on top of the losses from earlier in the week.

These juniors could not go parabolic day after day without a violent downside correction. I think specs were just waiting for the first breakdown to jump short and make a fast buck on the reversal. Probably some round-number stop losses have been triggered today too. SLW held at $40 for a while but then fell like a rock below that, for example.

My point from yesterday is even more clear now. I do not like buying heavily on a day like today. But buying the meltdowns is where the money is made. Nobody has created a single ounce of silver from all of this and in a few days time we will start hearing about the next pending delivery failure and silver will start to rise in anticipation.

cheers!

mike