One thing to look at is that these sales you speak of are evidently not being plyed to rake in the maximum amount of profit available. most happen in the after hours markets where there are no bids.

Another point, if a huge large long had this supply of silver, they would in my mind be relatively smart money that would not be dumping into the market an asset that is still 40 to 50 % below it's all time high. What else can you purchase right now that is below it's price from 40 yrs ago...not even cabbage patch dolls.

Blythe is the commodity trader for jp morgan who invented the swaps and derivatives play that pretty much ruined the markets. Most cannot perform when asked to do so, there are trillions of these with no value being hidden, we will here of them soon as the states and cities in the u.s were talked into participating in these.

There are rumors that the u.s had a silver which was taken from it's use in the manhattan project way back then but that was used and sold many many yrs ago. Also China has been reported to have lent large amounts of silver to the u.s gov to be allowed into the wto. The silver was sold into the market to stop the rise in silver which would hide the western worlds reckless ways of financial keynesian experimentation of printing your way out of things. Lower interest rates and money printing cannot be used to hide the deficiency of their thinking when the canary in the coal mine of inflation[gold and silver rising] is telling them that they are wrong and should be raising rates. Raising rates and lowering money printing will not get you re-elected. As long as silver and gold are low they can play away as the dumbed down masses believe there is no inflation. This will change overnite, and is as we see in the worlds present hotspots.

Some good points though, i would think that anyone with that large of a long position would be well informed investor with deep pockets. Looking at the markets the way i have the last 20 yrs there is no where this large position could have been built up without disrupting the market and the price in my opinion. In other words no way to build such a large position without exposing your hand. Just not enough silver to do so without outing your buys to the world. Now the opposite of naked shorting through paper derivatives is endless with the support of some large banks that have been proven to be short 10 yrs supply.

There are rumors that the u.s had a silver which was taken from it's use in the manhattan project way back then but that was used and sold many many yrs ago.

Wednesday, February 23, 2011

Wacky Wednesday (updated)

Its called that because Blythe is in there, whacking away at the silver advance.

You can see it already. The EE has decided to vigorously defend the area around 33.40. Why there, I have no idea but you can clearly see it here on this latest hourly chart (WO edition):

This is a chart that looks to me like it wants to go higher. Much higher. And soon. Like a pop up toward 34 and beyond is in the cards before too long. We'll see...

Someone on the earlier thread posted some preliminary numbers for the March OI basis yesterday. The number was something like 48000+. If this is accurate, it is a truly astounding number! Again, by Monday at 1:30 EST, you either have to show 100% funds for delivery or be out. There is no in between. Watch this very, very, very closely today.

Lost amongst the shuffle of all the madness, this pig looks like crap. It must be watched closely as we are once again approaching some pretty significant, long-term technical levels.

OK, its off to the races on this pivotal day. I have a high in April gold of 1406 and a last of 1403. Very nice. I have a high in March silver of 33.39 (sound familiar?) and a last of 33.07.
You have a great seat for observing this epic battle. Enjoy.
As usual, more later. TF


10:50 EST UPDATE:
Well, this was pretty good...
"This is a chart that looks to me like it wants to go higher. Much higher. And soon. Like a pop up toward 34 and beyond is in the cards before too long."
If you're trading this morning, don't bail too quickly. Blythe is dealing with a severe counter-attack is surely under duress. Let this keep kicking higher for another 90 minutes or so. Sometime, after 12:30 EST, I'll be looking to finally sell my remaining March calls. On any subsequent pullback, I'll begin piling into May.