The Ongoing Silver Question?

It would be so much easier to see a press release saying "Blythe Masters is leaving JPM", then we'd know who won this battle for sure. However, we don't have that so we must try to figure this out on our own.

 The daily chart, the breakout is very parabolic and I think that is partly because the Silver bugs got a head start while the US market was closed, a sort of sucker punch. However, we now have 3 days in which the daily candles are not going anywhere (correction through time?). Honestly for such a big breakout, I'd expect the volume to be heavier. Don't put it past JPM to allow a breakout just to cause a bull trap.

 We can clearly see on the 15 minute chart where distribution of the event occurred and now we have a bit of a leading negative divergence, although not a nail in the coffin. It does suggest continued downside for at least today.

Like much of the rest of the market the 1 min chart is simply in confirmation meaning there isn't any heavy institutional activity. If I were Blythe, I'd let the profit taking bring SLV down as much as possible, then I'd expend my dry powder on shorting the rest below the breakout point. At that point, the longs would be caught at a loss and would start selling on margin calls because this is a very personal trade. It's David and Goliath, it's those who have deep convictions against fiat currencies and their belief that silver and gold will replace fiats. So you can bet the leverage and margin is there. For JPM, it's a matter of survival to some extent. If they cornered the silver market and lost to a viral campaign, it wouldn't look very good to shareholders and some high management-high salary heads would roll.

So we'll keep track of this one, not because it's interesting, but because if JPM does succeed, there's a great trade waiting in the wings for a fast buck.