I still think SLW is a reliable indicator for the short term direction of the entire sector, and we have a bullish divergence for SLW today. The markets are in the tank and silver itself is down on a big move, yet SLW held relatively firm most of the session and is now trading green. This supports my assumption that shorting was a big part of the story over the last few months to drag the stock down, and we are now seeing short covering on high volume to unwind those positions. The easy money on the SLW correction has been made and if the big players are now ready to go long, then the next leg higher for the stock should commence shortly. Also, I tend to believe the same players short bigtime for the stocks are also heavily short the metals. So an unwinding of the short side of the trade would seem to be bullish for the sector as a whole.

cheers!
mike