Market Curiosity: Exploring Markets And Systems

April 21, 2011

Silver has more volume than gold today, SIFO in backwardation, again

Filed under: Just Watching — Tags: , , , — Jeff Fitzmyers @ 7:06 am

Never seen this before. 6:40 am PST.

Backwardation returns to the LBMA.

James Turk – We Live on the Edge of Chaos, Dollar to Plummet: I don’t see the shorts panicking yet. I think we are getting to the stage though where people are afraid to add new shorts into the markets simply because of what’s been happening with the price. So I’m still looking for my $50 target and when we were speaking on Monday I said it could happen in a couple of weeks but we’ve gone up a couple of bucks in just the last couple of days… So yeah, you are going to get that short covering and you are going to get the panic and it’s going to take things higher.”

Mr Fergesun: Anyway, as a precaution, I am now long 1 July $50 silver call which cost me a cool $7500. However, the recent spike, the upcoming option expiration and this latest news all but guarantees a steep but brief selloff is just over the horizon. I’d put the chances at 90%. On the 10% chance there is no pullback….which is why I bought the call…silver is going to accelerate UPward rather quickly here.

Updated volume 7:04 am PST.

Updated volume 1:18 PST. And silver ended up about 4.75%. On big volume.

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