The Short Squeeze Is Getting Closer
Posted: Sat Nov 06, 2010 7:28 amhttp://seekingalpha.com/article/234282-cot-update-the-short-squeeze-is-getting-closer
IMHO, we are seeing the first effects of a massive SHORT SQUEEZE of JPM and friends in SILVER, and to a smaller extent in GOLD. There are some who believe that this will be like the Cornelius Vanderbilt short squeeze of years gone by, when he purposely let sellers sell short railroad stock when he was the only one he owned the shares for which they could cover (buy back) their short positions. The result was that the SHORT SELLERS were bankrupted because Vanderbilt could charge whatever price for the shares they needed that he wanted - the price he charged bankrupted them all. Of course, in today's age of Federal bailouts, the FED would have no recourse but to bail out the "TOO BIG TO FAIL BANKS" once again. However, when the hedge funds smell blood, they are like sharks moving in for the kill. I would look for the hedgees to make a big impact in the relatively small SILVER market in the next few weeks. The level that SILVER and GOLD could reach is unknown under all these variables, but I would guess it would be MULTIPLES higher than it is now. Did you WONDER why SILVER made a dramatic rise on Friday while the dollar was very strong? Looks like SHORT COVERING to me.
IMHO, we are seeing the first effects of a massive SHORT SQUEEZE of JPM and friends in SILVER, and to a smaller extent in GOLD. There are some who believe that this will be like the Cornelius Vanderbilt short squeeze of years gone by, when he purposely let sellers sell short railroad stock when he was the only one he owned the shares for which they could cover (buy back) their short positions. The result was that the SHORT SELLERS were bankrupted because Vanderbilt could charge whatever price for the shares they needed that he wanted - the price he charged bankrupted them all. Of course, in today's age of Federal bailouts, the FED would have no recourse but to bail out the "TOO BIG TO FAIL BANKS" once again. However, when the hedge funds smell blood, they are like sharks moving in for the kill. I would look for the hedgees to make a big impact in the relatively small SILVER market in the next few weeks. The level that SILVER and GOLD could reach is unknown under all these variables, but I would guess it would be MULTIPLES higher than it is now. Did you WONDER why SILVER made a dramatic rise on Friday while the dollar was very strong? Looks like SHORT COVERING to me.
I know I need more but I'm still married an will enjoy 50 in Feb 2011. She did double my allowance its $10 bucks a week now 