Uppdatering av läget från Ted Butler:
We are set up for violent price reversals to the upside for silver and for all the COMEX/NYMEX metals. Maybe the setup can get stretched out a little longer, but it looks stretched out enough to me by historical standards. We’ve gone too low in price on too many important commodities as a result of this stupid and manipulative machine trading. There’s a payback and a counter-reaction to the price distortions we’ve witnessed and it seems to me that the payback is at hand.
I think the technical funds have been lulled into a sense of complacency, particularly in silver, by how easy the commercials have let them off the hook when they held extreme short positions recently. But just because the commercials have let the technical funds buy back shorts at prices close to upside penetrations of important moving averages previously, doesn’t mean that will always be the case. Just because the technical funds think they will be able to buy back silver shorts near the $18 mark, that doesn’t necessarily make it so. The commercials can demand much higher prices before selling. There will come a day when the commercials won’t be nearly as accommodative to the technical funds as they had been previously and that will be a great day for silver investors. That day seems at hand to me. – Silver analyst Ted Butler: 29 October 2014