Things are back to business as usual in the Comex silver market with the Managed Money camp eager to buy in on the long side while the Commercials and Swap Dealers generally take the other side of the trade.
Silver has rallied another $2.18 since Tuesday's close which is no mean feat. Short positions in this market are deeply hemorrhaging since that cut off day which makes it all the more remarkable that thus far we are not seeing a reduction in total open interest. That means that the shorts are not being squeezed out yet although yesterday's and today's action has all the hallmarks of a significant short being squeezed out of this market.
There are still some fresh sellers however who keep coming in. Someone on the short side has some amazingly deep pockets to deal with this kind of onslaught and continue piling on more positions.
On the other hand, Managed Money is getting aggressive with this market and because of its small size, they have considerable firepower at their disposal which allows them to run this market very hard to the upside.
The general public is sleeping right now and must have missed this move. They are well down from their recent peak of nearly 20,000 net longs. That I take as a further positive sign.
"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat
Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput
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