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I don't see any empirical evidence of that when I look at my footprint chart. The only thing I do see is the weekend gap. There were people on social media showing that they were going around town and buying all the silver they could, and that everyone was out. Physical suppliers would obviously be scrambling to get more at that point. So market makers saw what was going on and appropriately opened the market at a higher price. There was plenty of volume at that new higher price so I'd say the market makers acted appropriately.
Doesn't mean it will continue. I liked the metals trade before all of that though. They've stumbled at key points along the way, but the day to day action over there suggests there's definitely a good number of bulls in that market trying to break out to the upside.
Now contrast this with GME that traded 35m shares today. Pretty pathetic compared to the 175m they were trading last week. The RobinHood hault has definitely stalled this market. Today there was some selling off the S3 report that the number of shorts dropped. However, I'm not sure how accurate their model really is. We don't get official data until Feb 9th. Until then I can't really know what's going on under the surface. I just find it awfully hard to believe that last Wed there was a record number of shorts, and then in the days since when the volume has been barely anything they somehow covered it all. Clearly the data we get in retail on this sort of thing is neither current nor reliable.
I dunno if it's just ignorance, some form of dis-info, or just trying to turn something into a story.... but the narrative in the media is interesting.
The hottest posts on reddit are telling people to NOT buy silver. See below:
2021-02-01_194521
However if you were to get all your info from the MSM, the message is all about a short squeeze put on by wsb: 2021-02-01_194815
All weekend we’ve been reading how Reddit readers are now going to “squeeze” the shorts out of silver to spike prices. But that rationalization makes no sense because there aren’t many speculative shorts in the silver market. In fact, Large Speculators are net-long 33% of total open interest, as shown on the chart. The weighty discussions in the media about the meaning of this group or that group relative to a market move is silly.
I exited the trade this morning. I had achieved about a 20% return on the initial premium collected in three days, on a contract expiring > 70 days. The IV had dropped from 400% to 270%, and the puts were so far ITM that delta was starting to kick in against me, and there wasn't much premium left on the calls, and I don't think it's going to go back up anywhere near 310, which is where my max profit levels are achieved, so I just took the money and ran. At 270% IV there might be another trade I can do here to take advantage of more down-side. Stay tuned...
For what it is worth I analyzed Gamestock using my new indicators to identify changes in buyer and seller behaviors over time rather than in the 10 days of very high volatility when GME became top of mind for some traders. the different time frames were chosen so volatility did not distort the scaling so much.
Some initial interpretations suggest the buying activity occurred over the previous 10 days before prices peaked.
The first chart below shows selling pressure as indicated by my Six Paths accumulating marginal change in net buying and selling volume per bar recounted with 30-day periodicities over two years that reflects the main selling or shorting activities, Shorting probably started about February 2019 and finished about early August 2019. Thereafter there was a period of absorption where prices did not rise or fall too much. Dow Theory might have suggested it was a Line Pattern. The absorption finished about mid-August 2020 when the supposed small trader (or hidden counter-trend Smart Money traders) created buying activity which took off with a four or five-fold increase in price. Your indicators if you were following GME, which I wasn't) should have been fluttering the flags (something was amiss). Much earlier than 10-days before the eventual astronomical peak was achieved.
The second chart shows the next few days and the problem of scaling the indicators over the last 6 months. That is where I believe some pundits (who may not have a clue) suggest the buying activity started.
