Silver ETFs exploded higher today after holding support on a closing basis at the 20 day simple moving average. SLV, the most active Silver ETF has not closed below this level since the uptrend began in late August. Today on the news that Ireland would be bailed out all the precious metals (especially silver) blasted higher with SLV closing $1.35 higher (5.4%) and the Double Silver ETF AGQ up more than 10%. That is a tremendous move and it shows just how volatile the markets have become.
According to the last commitment of traders report, a couple large commercial banks are still holding enormous short positions. Whether or not they are eventually forced to cover those positions is probably the biggest unknown variable in this market. It will be fascinating to watch this unfold.
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