"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


Tuesday, March 22, 2011

Silver update - 4:30 PM CDT

Silver kept to its recent pattern of moving higher after the close of pit session trading adding another 10 -15 cents in the after hours trading but was unable to breach $36.50, the last line of defense being erected by the shorts to prevent a surge above $37.

Volume to the upside has been pretty good but not strong enough to dislodge the shorts from behind this castle.

Upside momentum is waning on this time frame chart as it is reflecting the inability of the bulls to breach $36.50. The Percent R, which is an indicator that is useful to gauge oversold and overbought zones for markets which are range trading or consolidating, which is what silver is currently doing, is now at the sell zone. That puts the burden upon the bulls to press through the sell side barrier and kick the market into a trending phase higher or some of the weaker longs will decide to book some profits and wait for another pullback before coming back in again.

If that should occur, we will want to see how the market handles any setback towards $36. If it can hold that level, it will embolden the longs to move back in very quickly and force some of the weaker shorts back out. If that level fails, there is support on the downside first near $35.50 and then near $35.


  1. Blythe is on the prowl with it being OpEx week. We'll see what she brings tomorrow. I am ALL IN... and keeping fingers crossed.


  2. Dan,

    I assume you saw this article:


    Any comments?


  3. The JPM thing is pretty outrageous, isn't it? I don't know why we are even surprised, as this bank is among a handful of entities that run the western world. However moves of this type just further indicate that they are slowly being cornered. Keep buying physical and all will be well.

  4. Bombshell of an artcle. Thanks Jesus. I forwarded it to CFTC Chairman Gensler and Bart Chilton. Let's see what happens.

  5. Dan,

    Is Percent R, basically the same as RSI, relative strength indicator?

  6. Dan,

    Regarding that volume on the chart what volume is it? Is it COMEX trading volume or sth?

  7. Rui - the volume is taken from the comex market.

    PhotonFanatic - the Percent R is not the same as the RSI which stands for Relative STrength Indicator. The Percent R is made for use in ranging markets.

    JesusfreakenCo - nothing that the Feds allow with Morgan surprises me anymore.


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