Looking ahead to this week we have the much anticipated First Notice Day for March Delivery Monday. Ed Steer in his Gold & Silver Daily blog Saturday reported the following regarding deliveries posted for Tuesday March 1st:
Well, the CME Delivery Report has deliveries posted for March 1st already. The report showed that 823 gold, along with 252 silver contracts, were posted for delivery on that date.
For first day notice in silver, I was expecting far more delivery activity than this.
Harvey Organ in his blog reported Saturday that, basis Thursday, open interest in Silver has continued to fall, but remains on the high side going into March Delivery:
The open interest for March declined from 28,275 to 14,259 pretty close to what I thought. My guess is that the OI for Monday will turn out to be around 8000 or 40 million oz.
The CRIMEX delivery warehouse only has about 43 million ounces in it. This could get very interesting. Keep a close eye on the number of delivery notices as the month of March progresses. The further we get into the end of March without these Silver delivery demands being met, the more likely we will see another short squeeze of these criminal bankers soon.
Silver is attempting to break from a Bullish Flag pattern this evening. According to stockcharts.com Chart School :
Flags and Pennants are short-term continuation patterns that mark a small consolidation before the previous move resumes. These patterns are usually preceded by a sharp advance or decline with heavy volume, and mark a mid-point of the move.
Flag patterns generally occur around the halfway point of a major move up [or down]. This Flag has the potential to see Silver move up another $8 from here. Conservatively, a move to $37-8 Silver is not out of the question over the next couple of weeks. We must, however, remain wary, as this is the Silver market we are discussing here. But if 40 million ounces of Silver stand for delivery in March vs. a 43 million ounce supply of Silver, there could be quite a move higher in Silver soon.
Keep a very close eye on the US Dollar Index as the week opens. The Dollar is flirting with a breach of key support here at 77 on that index. The Dollar could get very ugly in a hurry should 77 support fall. In the Dollar's defense here, it does look poised for a bit of a small rally going into this week...but upside looks limited to it's 20-day moving average at 77.89 and/or it's 40-day moving average at 78.12 as it's weekly chart has turned decidedly bearish over the past two weeks.
Silver remains the leader in the Precious Metals at this time. Oil has assumed leadership in the commodities complex. And despite what the mainstream financial press continues to spew, Oil and unrest in the middle east are not the cause of Inflation fears...the two are just drawing attention to the Inflation everyone in the mainstream financial press has refused to recognize as the Fed continues to print money at a dazzling pace.
Silver is Walking Tall tonight.