I just got off the phone with Mister Hyde. We were discussing the predictability of the EE beatdowns.
Something significant dawned on us. We now know that the March open interest barely budged on Friday. It remained very high at 50,848. Blythe knew this, too, which was why she was on the floor last night, personally directing the raid like Rommel from his battle tank. OK, now, lets think like Blythe for a moment. If you're her, you're pissed. You have foreboding felling that things are getting away from you. You must raid. NOW. Not tomorrow (Tuesday), but now!
March silver officially closed on the Comex at $32.30 back on Friday. It impressively traded higher all afternoon on the Globex. We discussed that great strength here: http://tfmetalsreport.blogspot.com/2011/02/amazing-day.html
Monday comes and its a holiday. The Comex is closed but silver continues to trade on the Globex as it reflects global prices. Price reaches a high of $34.33 last evening before Blythe shouted "Genug!". At that point, if you're Blythe, you'd give anything to claw back the Globex gains and set us back to Friday's close. In fact, that might even be enough selling pressure to really get the ball rolling lower and force some weak hands to finally liquidate their March contracts.
With that in mind, look at this chart: