The price action in silver is about as volatile as anything I have ever witnessed

The price action in silver is about as volatile as anything I have ever witnessed in that pit! After collapsing 9%+ last evening in early Asian trade, a collapse into a downside air pocket that required CME Group to halt silver trading four different times, silver reversed course as gold moved higher. This time around, it was not bulls getting forced out; it was bears especially those who shorted below $21. Their losses must be enormous right now. Look at the price action. You can see the panic among the shorts by the surge in volume as price moved through the overnight high in price.

Keep in mind that in both gold and silver, hedge funds have been building larger and larger short positions. We are now witnessing some of those shorts being lifted as the excessive bearishness among that contingent of traders has caught some of them napping and unprepared for the abrupt turnaround in price.

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