Wow, what a week in the gold and silver markets! Today we had Bob Moriarty calling for a top in silver the same day JPM and HSBS desperately needed some breathing room due to options expiry and a certain problem called inventory (maybe Bob's now on Blythe's payroll...I bet she pays better than all those penny stocks he pumps on 321.gold), as well as an afternoon smashdown attempt in the COMEX pits for the second day in a row.
Silver's technical price action during the manipulation attempts of the last 2 days has been tremendous. With the silver margin and maintenance rate hikes announced yesterday, silver sold off from the $38.20 level down to $36.90 before finding strong buying support and quickly rebounding. Yesterday we stated we expected this intervention to last 24-48 hours. That turned out to be an easy call.
By early this morning, silver had already retraced almost all of its losses, shooting back to within .30 of its highs reached yesterday. This obviously gave Blythe a myocardial infarction, as all that hard work orchestrating a sell-off yesterday was now in vain, as 636 silver contracts remain to be served by Monday!
Obviously, another smackdown was desperately needed today, as yesterday's shenanigans did not collapse silver below the $36 level as was expected by the bankers. The price action today is amazingly strong, as silver took the paper sell-off, found support, and bounced exactly at $36.90, the same support level as yesterday!
Get ready for a WILD day on Monday, expect Blythe and co to show up early and throw out all the stops to get the gray stuff under control ($35-$36).
