JPM vs Silver

By now, you've probably heard about the internet viral campaign to sink JPM by buying physical silver as JPM inherited a large short on silver from Bear Stearns. Now I don't know what's real in this and what isn't. Originally the line in the sand was $30/$32 or so for silver and it was supposed to shoot up to $50, now the line has moved to the $36 area or so. A reader sent me some information about the connection so  figured I'd post both charts. I'm not sure I see a whole lot of correlation here, but I may be missing something so I present them for you.

Here is yesterday's SLV analysis (since I can't analyze COMEX with 3C I use SLV).

Here are the JPM and SLV charts:

JPM with SLV compared in red on a 5-day chart. JPM is tracing out a double top as SLV moves higher, this would be interesting if the Money Center Industry Group that JPM belongs to didn't look exactly the same-see next chart.

There are 55 components in the Money Center Bank Industry, JPM is obviously a heavy hitter, but there are several other big banks in there as well.

JPM 30 min chart shows the most recent top (second top of the double top with a negative divergence), but right after we have a slight positive divergence. I wonder if JPM will make another run for resistance around $48 and if so, dos that say something about Silver?

We see the exact same situation on the 15 min chart, with the same question.

And here's the close up on the 5 min chart of the divergence.

On a 1-min chart we do have a negative divergence. If this 1-min negative continues to build, it will effect the 5, 10, 15 min charts, otherwise it may just be reacting to today's market conditions thus far.

SLV

SLV is in a correction, remember, equities can correct through price and through time-a rectangle is a perfect example of correcting through time without losing ground in price.

Here's the 60 min 3C SLV chart indicating a negative divergence. It's not VERY strong, but it's enough for a correction and it could build. Remember my analysis yesterday, I'm not of an opinion one way or the other, just looking for the high probability/low risk trade.

The 30 min 3C chat looks a bit worse, which can effect the hourly.

The 15 min chart looks very bad the last two days, especially as today tries to stay in the same relative price zone, 3C has dropped into the worst kind of divergence, a leading negative divergence in the red box.

We can see a positive divergence yesterday building for the gap up this morning, but that gap on the 5 min chart saw a quick negative divergence right off the open.

Finally the 1 min chart illustrates the failure of the gap on a 3C basis this morning.

I think we'll need to see more data before we can say there's a definitive correlation between the price of SLV and JPM, I have not been a fan of JPM and believe SLV or not, it's in some trouble, but the question re: silver remains open. JPM has significant resources and they are not the only ones in the short silver trade. Could they be setting up the mother of all bull traps?