From the silver bearish camp: “Even a dead cat will bounce if thrown down hard enough.”
From the silver bullish camp: “The fundamentals for silver have not changed.”
Both are true and are likely in agreement for this Friday. Beaten up silver is very highly likely to bounce and bounce hard when it does.
The bull/bear battle continues. Meanwhile, the COMEX open interest for silver has gone nowhere, still hovering near 130,000 contracts. Silver on the Cash Market is trading well under the near-active July contract and the bedlam of the past several trading days has caused a massive shift in trader confidence.
Bulls have become meek from bold, bears the opposite.
It all seems a bit far and a bit too fast, doesn’t it?
May has indeed arrived on schedule and it brought with it a vicious selloff in all commodities, blowing off the froth. What it really hasn’t done is change any of the underlying fundamentals that sent gold and silver skyward to begin with. What it hasn’t done is create a huge new pile of available silver metal to answer the huge and growing demand for it.
Now we can see if underneath that froth is a good stout ale, or just a namby pamby watered down lite beer instead.
If we had to guess, right now we’d say it looks like ale, but, as always, we shall let our trading stops be the judge. We take a flyer in the silver ETF market this morning in the premarket, albeit with a razor-thin work-or-else stop.
We are planning aGot Gold Reportupdate for this weekend, to be delivered to Vultures (Got Gold Report Subscribers) by late Sunday afternoon, early Monday at the latest.
That is all for now, but there is more to come.