I had to chuckle today when I saw several chart-readers posting on ZH that silver was "parabolic and due for a 20% pullback". What complete morons these people are...right there in the dummkopf category with Keynesian economists and green shoot-sucking CNBC hosts. As mentioned ad nauseam, only fundos matter in the PMs right now. Simple supply and demand. Throw your charts out the window.
As Harvey informed us over the weekend, the OI in Dec10 silver was still around 49,000 contracts basis last Thursday evening. 49,000 is a staggeringly large number given that the Dec10 futures and options go "off the board" tomorrow! If they intend to take delivery, these contract holders must pony up the funds by the close of business this Friday. Clearly, not all 49,000 are going to be exercised but if even a fraction of them stand their ground and give Blythe the finger, the Comex is going to have a very significant situation on their hands. I believe the action in the metals today, where they held and went higher in the face of a strong dollar, is indicative of the building pressure on the Evil Empire. Right now, the only thing you need to do tonight is read Harvey's update. Again, he usually updates around 8:00 EST.
I thought I'd post this chart. It looks like crap but it gives you an idea of what I expect to happen next.
Note the 10+% burst to a new high in mid-October. A pullback and consolidation before another burst of nearly 20% into early November. Now another pullback and consolidation is nearly complete. Silver will soon move back through 28.20 and then go tackle the closing high of 28.91 and intraday high of 29.34. Those levels will be bested leaving all the technicians scratching their heads. If the recent form holds, silver will trade to 33-35 before once again puling back and consolidating. I would expect this move very soon. Let's look for that $33-35 level to be reached by the time the current POMO schedule is finished, roughly December 9.
Again, ignore the chart-readers and the top-callers. Read Harvey tonight. Rest well because, with the expirations tomorrow, things might get a little crazy. Turd out.