SILVER--Something is up, possibly quite important.
Yesterday, even though gold was up big silver might well have gone down going by it's action the last few months.
That is because traders have been treating it more as an industrial metal and paying little attention to it's precious metal value. [silver of course has both components while gold does not].
So, yesterday was a bit surprising. Silver was up $.24.
Today with gold up only $3, silver is breaking down at least a small door. It is up $.74.
That is extraordinary unsusual given how it has been acting for months and especially, going up so much with gold close to unchanged.
We don't know what is causing it of course, possibly very few do at this point but with the big bullion banks having a track record of having such a massive ongoing short position and probable short term manipulation of the silver futures market for their gain on a regular basis, this unusual development bears watching.
Butler has for years argued that the bullion banks will at some point lose control and market forces will swamp their ability to add new shorts in size to trip sell stop orders and take it back down.
While we do not know what is going on, we do note this days activity as highly unusual and worth watching.
If Silver ever does get in a short squeeze position, one would certainly want to be involved on the long side.
The chart will tip off that potential in advance. The chart won't guarantee it's going to happen, but just like any chart...the right setup will indicate much higher prices are likely.
If it's a short sqeeze...major frosting on the cake.
We're basically very long since 1991 so it's mostly academic, but since we also have a traders heart we want to get the word out to put it on the watch list.
thanks,
Fabian
