Loading ...Silver OI stunner
Bill,
The bizarreness that is the silver market just ratcheted up its bizarreness another notch. While silver was gaining a measly 11 1/2 cents yesterday its OI plunged a whopping 12,873 contracts – that’s one hellof a lot of short covering for such a puny gain. That’s over 1,000 shorts per PENNY who managed to flee the scene without pain. The May contract lost a gargantuan 26,310 contracts, almost 13% of the entire OI. Obviously many of the May shorts were NOT rolled into July, which could be construed as bullish. At this rate we could lose another 40K in OI before silver without silver ever crossing the $17 threshold. Once more these are Houdini-like shorts, who never seem to have to pay the price for a blunderous position. It was obvious too silver was being capped all day, making it even more preposterous how that kind of escape could happen. No doubt too Harvey will have a field day with the monstrous EFP’s that were done.
The metals should hold their ground close to here if the recent rally is going to resume. It is important to remember not only how quickly silver shot to $17.38, but how unusual that was in recent cartel terms. In the meantime I view the odds of silver exceeding $17 by May 1 at somewhere around 0.0001%. After May 1st the odds of even more bizarre behavior- either way – is at 100%. The setup is as bullish as can be, but as we know that ship is still marooned on Cartel Island. Hey, even Gilligan and his merry band of 1960’s sit-com buddies eventually managed to sail away and escape Gilligan’s Island, right?
James Mc…