Submitted by: Francis Soyer
So what has changed from last week to this week... Fundamentally with Silver nothing save Geitner asking congress to print another $2 Trillion out of thin air or face bouncing checks from the Treasury or the big D Word Default. The other thing that has changed is that the Hong Kong Exchange has initiated their own exchange for Silver Contracts thus will make it harder for the CME to push prices lower in that the market which knows everything will arbitrage gross inefficiencies in price movement. I suspect the Hong Kong exchange for delivery of Silver crontracts was created in that Asian and other offshore buyers of Silver no longer have faith in the CME in their ability to make good on deliveries of the metal hence created their own to mitigate this risk. From a technical point of view the bounce after the CME raised margins by 84% last week to flush out week longs has been as violent as the move down. Some technicians believe we should see 50's again withing couple weaks.
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