Silver-The Next Big PM Play?

I hope everyone had a great Holiday / day off. Time to start looking at the market again.

If you've been around a while you know silver and SLV are my least favorite assets to analyze because they are so heavily manipulated; whether JPM, the grass-roots "Break JPM's Silver Short" movement, the COMEX hiking margins 5 or 6 times in nearly as many days or the open admission from the CFTC commissioner that there have been "repeated attempts" to control, manipulate and influence the price of silver according to data he's seen.

Word is that something is up in silver again so I took a quick look, I concur. This may be a bit more tricky than the usual trade; I'd like to get some more information via underlying trade, I may even support an actual physical silver play rather than a equity trade, that's why I need to see more information in the coming days, but this tells me something is definitely going on and others (like Eric Sprott) have documented other strange behavior in silver recently.

 Looking at the daily chart most of you can probably spot the activity that is generally connected with a pre-planned cycle or what would be better known as manipulation. Just follow price, ask yourself where the stops would be, where the shorts would step in the market and see if you can spot the proof they did (I gave a couple of hints). Where there's smoke, there's fire.

Taking a broad view of the situation, the 60 min 3C chart of SLV shows some curious things, in September there was definitive distribution sending prices lower, then October accumulation which was the support level on the daily chart above this one. When price turned down in November from the highs, notice that distribution was much smaller this time and at a new price low we have a large 3C relative positive divergence. Something definitely changed from September to October and certainly now.

We'll be looking at this closer, but all the things we look for to gain an edge are there, it's just a matter of timing and finding the right vehicle to take advantage of the situation.

Merry Christmas, Happy Holidays & A Fantastic New Year

I don't know how many times I've said it, but it's worth saying one more; I am blessed with the best group of traders/investors that any one could ask for. Most of you have been with me for years and many are like family, who have sent some of the most encouraging, sympathetic, and helpful messages I can imagine.

It's sometimes hard to believe that most of us have never met, yet there are such incredible people out there and somehow I ended up with the best of the best of them.

So on this day I wanted to just take a moment to say once more, thank you... not only for being a part of what we are trying to do here at Wolf, but for everything else that you do throughout the year-just being yourselves; you can't imagine how much all of you have meant my family and myself.

Wishing you happiness, health, a joyous spirit and a wonderful life.

Brandt (and family)