I have a theory that alot of institutional money went short the Silver mining Equities at the $40 Silver mark, which was hit on Friday April 8th. I think many believed $40 was a price target that Silver would pierce, and then correct from...I've seen discussion of corrections back to the $32 and/or $24 mark.

The SLW:SLV ratio hit an intraday high of 1.1942, but closed at 1.1769 on April 8th despite the fact SLV closed that day a mere 4 cents off its high of the day at $39.86. SLW closed on April 8th at $46.91.

SLW has dropped 10% since that time, rejecting SLV's 13.4% increase in value.

If I am correct, the last hour of trading might get very interesting. Will those short the silver miners stay short over the three day weekend and risk another gap up next Monday?

Flip this concept around for a moment. Imagine if since the close on April 8, 2011 that SLW had risen 13.4% from $46.91 to $53.20 on a 10% drop in the price of Silver from $40.91 to $36.82.

If that had happened, the SLW:SLV ratio would have moved to 1.483...almost exactly where it spiked to on Pearl Harbor Day 2010.

With the SLW:SLV ratio at .933 today....one has to wonder what is going on......why is this ratio about to close the week at a new 52 week low at the exact time Silver is going to close the week at a multi decade high....there is no answer as markets are illogical...