So my previously mentioned 2 downside targets, 36 and 33, were reached. Where are we going now? There is certainly no conformation of an upturn and the downtrend hasn't been broken.

I was in NYC for the Hard Asset show where I got a feel of what the American public is thinking of Silver. In a nutshel, Silver and Gold are still a fringe asset classes at the moment and the term "bubble" is still loosely thrown around. Sprott is still extremely bullish and makes an interesting case for the Doom and Gloom side. I'm looking at this market and the Silver chart which looks like..... a micro-cap pump'n'dump!

The institutions I spoke to are still pro-USA and don't think the USD is dead, they are refraining from any real positions in silver and hesitant about gold. I ahve a friend that trades FX options at a mid sized hedge-fund and, like their peer group, have zero inclination to get into the precious metals as a currency hedge. From what I can see, the current investment base in the metals is still overwhelmingly retail and the volume created is algorithmic trading. In fact, it reminds me of something I would see on the TSXV that just went through the discovery process - we have all seen it before and know how they act.

In that regard, I look at the Silver chart and I am still waiting for a pull to the 200EMA which today is at $30.75. Now, given that the people in SI are mainly retail and they repond to round numbers in a big what by placing limit and stop orders there in a rather systematic way, I would expect that algos and pro traders will take SI just below 30 to completely f*ck the small guys. This thing is extremely volatile.

Now, I am not saying that we will necessarily dip below 30 or that we won't go up from here. What I am saying is that my strategy for SI or SLV or PSLV or any silver equities will be to wait for a dip below the 30 to trigger stop and limit orders or to see a sustained uptrend to get back in.

Hope everyone still has their shirts!

Cheers, J.