Excerpt from GotGold that you may find interesting.....

"As James Turk aptly asked, who is doing the selling? From the data, apparently the correct answer up to November 2, is pretty close to no one in the COMEX futures bourse. The “normal” Big Sellers have been net buyers. The normal Big Buyers have been net sellers!

We believe that we are witness to another case of a “rolling fallback” by the existing commercial traders, similar to the 2005 and 2007 examples, but perhaps this time the Big Sellers have a great deal less confidence that the price of silver will come back down. At least so far. Get that?

A rolling fall-back is our term for where the big sellers are forced to close out losing short contracts while redeploying new short positions at today’s higher prices. It explains the phenomenon where the price of silver advances sharply but the commercial net short position rises less than expected. We believe, based on the data above, that some of the commercial net short positioning is NOT being redeployed. At least not yet.

If you have managed to make it this far, do you find this data surprising?

Yeah, so do we. And we’d like to send our thanks to James Turk for inspiring us to take a much closer look at the data. Having done so, we suspect that the data above is very strongly bullish for silver short term. Essentially the market price for silver has gone up very strongly, but just as we have been saying in our KWN interviews, so far at least the commercial traders are not trading as though they are confident in lower silver prices. To the contrary.

That could change in the near future. There could be a point where the Big Sellers become emboldened to sell the heck out of silver futures with “reckless impunity,” as our colleague Dan Norcini describes the historic action of the bullion banks. As of this minute, however, the Big Sellers seem less than motivated.

If not for the surprise margin price hike by the CME we strongly suspect that silver would already have eclipsed James’ $30 target, and maybe by quite a bit. The silver market was very close to becoming disorderly on Tuesday.

We could be wrong, of course, but that is why we Vultures always use trading stops instead of trying to guess market tops.

That is all for now, but there is more to come and as always, MIND YOUR STOPS.