As I write this, silver is breaking out and now sits just below the $36 level. However, many of the market leaders I track in the sector have gone from well into the green to now being heavily sold this morning, including FR and SLW, two of the bellweather stocks. So my expectation is that another smackdown is approaching as silver once again tests the $36 level. This is a line-in-the-sand price for the criminals that manage the paper silver market, and it is likely where they will carpet bomb the metal later today. Naturally the same criminals will short the hell out of the silver juniors first, and then cover on after they beat down the metals.

I am going out to enjoy the day. I have seen this scam play out too many times to worry about it. Back in the good ole days, a steep move higher in the metal would have represented 5% gains across the board for the juniors. That was so last year. The criminals have figured out they can do what they want, no matter how obvious or outrageous, and get away with it. If I can spot this in real time, then the regulators can. There is nothing to do but wait until the crooks get too far extended on the derivatives, and the shortage of metal then dictates the actual price. Just like the same greedy crooks eventually got burned going too far on a limb with the mortgage scam, this will eventually collapse and the real bullion will win the day. I doubt that it will happen today though and those who have hung in with the juniors will get served up yet again.

cheers!

mike