I think betting against manipulators is a dangerous game. Remember what happened when the margin was raised by 30% for holding leveraged silver? The drop was big and fast. This fact tells me that the longs are the ones that were way over leveraged, if the calls about JP Morgan were correct wouldn't that have been the straw that broke the camels back? If everyone was right that spike should have been up, not down. Now this has another ramafication, if the long side are the ones that are over leveraged that would mean they CAN'T take physicall delivery as they couldn't possibly afford to. Another interesting developement is JP Morgan trying to corner the copper market as a hedge to silver shorts. Now this is a great move if it's true. The people going long on copper ARE NOT traders but companies who actually NEED to take physical delivery! I think we are very close to chalking up a win to JP Morgan on this one, even if they get close to being smashed free money directly from the fed will keep them affloat long enough for thier strategy to work in my opinion.
This is obviously my opinion only and i am certainly not trading precious metals with these kinds of swings and question marks, although i would think it prudent to be very cautious in trying to take down the "BIG BOYS" with a couple of pea shooters :)
If a could afford the margins i would going short silver and long copper as a pairs trade and see how the next few months pans out.(bear in mind i don't have enough money because i suck at trading!)
Ps: Nice posting Voltaire, as always you keep a level head and approach the market without being biased or emotional.
