A More Detailed Analysis of Silver Money Flows

Denny,

Short answers, no and no.

Follow the money and watch the cycle dates. Silver is an extremely wild market, so the base formation will be bumpy.

Connected money has been aggressively long buying into weakness despite constant headlines pushing fear and doubt. This aggressive buying is illustrated by the mini flagpole in the L%WA (green line) in the chart below.

Silver London P.M Fixed and the Commercial Traders COT Futures and Options ZScore Weighted Average of Long & Short As A % of Open Interest


The inflows into silver are already the fifth strongest since 2001 (see chart below). In other words, this is no minor push into silver by connected players. The public will once again come to realize that money does not move like this without substantial expectations.

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


Regards,

Eric

Eric,

Silver:

1. Does the diffusion index have to rise above 38 to have a bottom?

2. If the DI goes higher into mid June does that mean silver has to
decline in price?

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Looks to me like silver has hit its bottom but needs more up and down
to complete the process. I can see some big swings in here over the
coming 4 weeks!

Thanks,Denny