silver squeeze...

  1. 963 Posts.
    Now this is the sort of talk I like to hear!

    SILVER: Giving silver a boost and mostly countervailing the recent rise in COMEX silver stocks is talk that silver, is in fact seeing aggressive fund buying and might even be the subject of a squeeze. The trade in New York is talking up the idea that such a large long position in futures is set to overwhelm physical supply and that might spark a sharp rally that in effect rations the supply. We are a skeptical of the squeeze theory but when a market is in a bull market posture those type of stories tend to surface! In fact, as long as the outlook toward precious metals is strong, silver could in effect become the leadership market. While silver also holds a record small spec and fund long position, its record isn’t as far beyond the old record, as is the gold position. An upward probe overnight leaves the market poised to run to a new high in the session today but considering the open interest of 115,510 contracts, one should expect more gains to be accompanied by expanded volatility. Next upside targeting is seen at $5.37 but it would not be good to see December silver trade back below $5.265.

    Cheers Ralph
 
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