Silver Commercial Signal Failure in Progress?

Submitted by SD Contributor FW:

Since early September, will all the huffing and puffing the cartel has directed towards silver, they’ve accomplished virtually nothing other than scaring the bejesus out of all but the most informed strong hand silver investors.  All the cartel has been able to do is push silver under $34 for a few hours per raid per week.  That’s pretty much unprecedented, yet sentiment remains so despondent that few seem to even notice that the cartel is actually already showing the weakness one would expect to see at the initial stage of a commercial signal failure.

The cartel has been attacking like mad for the better part of a whole month now, ripping out not only the kitchen sink but taking much of the rest of the plumbing out of the walls and hurling it at the paper markets.  Yet even through one of the fastest additions of short interest we’ve seen throughout this entire bull market, the cartel has little to show for it’s effort.

I believe we have been witnessing the initial stage of an evolving commercial signal failure.

With holiday trading behind us Tuesday, I think another retest of $35 will come.  It might take two days to blast through, but even the act of demonstrating once again that dips below $34 are being bought like crazy should provide the final kick in the bull’s rear and get it moving over $35 for good by the end of the week.
With all the raids over the past month since QE3 was announced, they’re amounting to nothing more than a hill of beans and an over-exposed short position.  With silver, in particular, we’ve already seen a pattern that resembles the first stage of an evolving commercial signal failure — an intermediate-term defeat of the cartel.  With all their huffing and puffing, their attacks since early September haven’t been able to keep silver under $34 for anything more than a few hours to a day or so. 

Physical demand is simply too strong and the cartel is going to retreat, letting silver move higher (into the low $40s in under 30 days).  It’s 9pm EST Monday as I type and spot silver is once again over $34.  See this for what this represents, friends.  It’s nothing less than astounding.

The cartel has been attacking like mad for the better part of a whole month now, ripping out not only the kitchen sink but taking much of the rest of the plumbing out of the walls and hurling it at the paper markets.  Yet even through one of the fastest additions of short interest we’ve seen throughout this entire bull market, the cartel has little to show for it’s effort.

I believe we have been witnessing the initial stage of an evolving commercial signal failure and a retest of $35 will likely come tomorrow, Oct. 9th, now that holiday trading is over.

Even if I’m wrong, the downside risk is tolerable given tremendous demand for physical and we’re eventually going up in the weeks and months ahead regardless.