Silver's Footprint of Control

The normal footprint of control by 'connected money' is revealed by the combination of opposite arrows. That is, selling strength (green up and red down) and buying weakness (red down and green up).

This footprint of control was first broken by late 2005 - early 2006. Connect money began buying strength rather than selling weakness. The introduction of the silver ETF (SLV) in April 2006 and Buffett's coincidental decision to sell his silver holdings (largely assumed to seed or front the paper silver ETF) provided material redirection of physical demand towards paper. The normal footprint of control had resumed by the fall of 2006.

The footprint of control, similar to 05-06, is once again showing signs of strain. Connected money is uncharacteristically buying rather than selling strength to contain the advance. Could this second and even-more powerful surge in demand for physical demand finally overwhelm the controlling mechanism of the paper market? It's likely that something material is going on here.

Silver London P.M Fixed and the Commercial Traders COT Futures and Options Stochastic Weighted Average of Net Long As A % of Open Interest: