Nice MA observation. Of course anything is possible in the wild...

Nice MA observation. Of course anything is possible in the wild west of COMEX silver but I think we have finished with silver drubbings for the near future.

So far this year not only have JP Morgan bounced the market a number of times but the market operator CME has done everything they can to shake investors out. Silver futures margins were raised by CME with the most careless of timing in May by 84% and 21% in September. And also matched by a 20% September yike by the Shanghai Gold Exchange.

Bart Chilton’s conclusion was a little different. He concluded the May silver crash in after hours markets was significantly enabled by high frequency trading. If the CFTC are doing their job this lightening bolt wont be allowed to strike twice.

At the last Commitment of Traders report on October 19^th Gene Arensberg reported that the number of commercial net short positions at 20,842 were just increasing from their lowest number since the silver bull market commenced in 2002, signalling he says a reliable bullish signal for silver. It is commonly recognized a large concentration in commercial short positions has at times over the past few years allowed JP Morgan to take down silver markets. This months net short commercial positions have increased only to 22,842.

If you want to watch the moving averages in relation to silver Adam Hamilton has developed a reliable value guide. In March using a relative 200 DMA as silver approached its peak he warned that the position was overbought and ripe for correction. Accordingly using that same measure, silver was and has been since its September low at 8-year bargain basement prices.

I would welcome another silver crash so I could buy more, but I doubt we will have another this year. If you aren’t invested in silver now I fear your a bystander.