Calling all 'Rocketiers of the Happy Silver Ship',

The Latest commitment of traders report for silver is now screaming out at full volume 'Buy, Buy, Buy',

In fact the Commercial short-long ratio that I have already bored you with at great length in recent correspondence is now down at a multi year super extreme of 1.79,

Below is an up to date chart of the COT picture, In summary there have only been 4 other weeks in this whole bull cycle where the ratio has dropped below 1.80,

4 weeks!

The first 2 weeks of these was 28th Aug 07 and the following week of 04th September 07, The second tranche was 21st Oct 08 and the following week 28th Oct 08,

If you study below both the chart of silver over that period and also the $hui gold mining index, you can see how these extreme lows below 1.80 in the ratio coincided on both occasions very markedly with a bottom in both the silver price and the mining index,

On each occasion this proved to be a multi-year opportunity to take positions in both the metal and the precious metal mining stocks. Each time the price of silver rose by some 60-90% within a 6 month period! And Hui index rose some 90-160%,

Folks there is no such thing as a risk free trade, There is no such thing as a free lunch, and there is no such thing as a one way bet, However there are certain times in an investment cycle when an outstanding opportunity presents itself and advantage should be taken,

The evidence above shows very clearly the historic correlation between an extreme low below 1.80 on the Commercial Short-Long ratio and a multi-month bottoming in the price of both silver and the precious metal mining stocks,

I've been trading the precious metal sector since 2003 and I would consider this to be one of perhaps 4 of the most suitable buying opportunities within the last 8 years!

I can only tell you what I'm doing, And I am up to the very top of my chest waders in all things shiny as I strongly suspect the big March North is almost upon us,

Remember a bull likes to travel with as few on his back as possible, Well with Open Interest in silver at multi-month lows and with extreme apathy seemingly overhanging most of the precious metals mining sector, I'd say this mighty steed's carrying about as light a pack as he's going to get,

From last week's lows, I am confident we are at or very close to the bottom of both the silver price and the miners and will be sorely disappointed if silver's not well past $50 and the Hui has not blown north of 800 by the start of 2012,

Buckle up, the thrusters are burning,

Rich (Live from 'The Bridge of the Silver Rocket Ship')