Market Curiosity: Exploring Markets And Systems

May 3, 2011

Mr Ferguson really put things in perspective tonight: 6,600 contracts clears out the Comex

Filed under: Just Watching — Tags: , , , — Jeff Fitzmyers @ 10:31 pm

Smells Like Capitulation (updated)33,000,000 [registered] ounces means the Comex only has enough silver to settle just 6,600 contracts. That, my friends, is the financial equivalent of blood in the water…

Yes the eligible metal could supposedly get the electronic warrants. Well then, why don’t they!?!?! I think an entity can only take a maximum delivery of 1,500 contracts. So now 4.4 entities could spend just $310,000,000 each and take all the registered silver. So the fate of the Comex, partially due to the “regulators” seemingly abdicating all responsibilities, is just a few whims away of a few entities with decent wealth, from being a smoking crater filled with people saying, “Well gee, how could this happen?”

Just watching this chart and waiting for the SLW:Silver ratio to make a higher low. Meaning that SLW is not dropping as much as silver. Mr. Sprott’s actions of sifting PSLV to silver and silver stocks suggest to me that possibly silver stocks will lead the metal after the correction.


  1. im going to get some JUNE silver calls. i will have to average my calls. i was expecting a pullback after running up so quickly. Fine job you are doing agian MC! keep it up

    Comment by enron89 — May 4, 2011 @ 9:16 am

  2. Thanks! I thought there might be a bounce up too off the daily 34 EMA, but that is not happening at all. I’m flat right now, but would not be surprised to see today end around 35-37. I missed this down move and am not good at catching falling knives, nor shorting them so I will stand aside until a bottom seems to form.

    Comment by Jeff — May 4, 2011 @ 9:35 am

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