The most over-used phrase of the last 10 years is 'perfect storm' but that is exactly what silver has just been through over the last 24 hours. We have seen what I consider far too many coincidences that raise my suspicious nature into the red zone. Really, Osama gets dead on the exact weekend when Chinese and UK markets are closed? Really, the meltdown in silver commenced almost from the open of trading, well before most people had a clue about the Bin Laden news? Add in 3 margin increases at the COMEX in a weeks time. Add in the first day of trading in the quarter, which starts off exactly as the first day of trading last quarter for the PM sector. Now factor in the mountain of bearish commentary from everyone... It is disgusting that hardly any mainstream commentary mentioned silver for years on the way up, but now suddenly the world is awash in experts that know exactly when the top is in? WTF???

Well the good news is that the silver market has not been a speculative bubble in my opinion. The rise in silver has been fundamentally driven all the way up. With silver much cheaper as the markets open tomorrow, my guess is there will be heavy buying. The dollar still looks sick. The technical and margin call selling is largely out of the way. Have the shorts covered? I think not.

What at they going to do next? Pull Osama out of the ocean and kill him again? Raise margin limits again now that silver is lower? Who is left out there to tell the world to sell silver that has not already repeated that nonsense several times lately?

My hunch is the juice is all squeezed out of the lemon for this round. I think we see a quick recovery. I think the PM juniors have been shorted into the ground and once the usual dummies are done selling into this blitz things will return to more normal bull market conditions where the metals are going higher and the goddamn stocks actually move up a bit too.

I am not impressed with all the crap that has happened in the last day or two of trading. I have been tempted to sell everything in this crooked market and just buy gold and silver bullion to ride out the corrupt regime we are living through. That usually marks a bottom. I did some buying today though and will just lash myself to the mast and ride out the storm yet again.

cheers!

mike