SP 500 and NDX Futures Daily Charts - Who Let the Bears Out?

Stocks took the gas pipe today, suffering their biggest one day drop of the summer after yesterday's decline.

And the guest expert on Bloomberg TV opined that this was because of fresh fears of tapering in September. Even though today's economic data was rather weak.

'Oh I see,' one lone voice chimed in. 'Then why isn't the dollar rallying?'

To which the expert replied, 'Duh, I don't know. That concerns me.'

More on this in the gold and silver commentary tonight.

NAV Premiums of Certain Precious Metal Trusts and Funds

Hi ho, Silver!

Gold Daily and Silver Weekly Charts - Thar She Blows?

The metals are hovering just below some key breakout points.

It has the appearance of a setup for an epic short squeeze, perhaps after some additional huffing and puffing.

Ted Butler thinks JPM has a corner going on the gold futures market on the COMEX.

"And I will be the first to attest that were it not for the incontrovertible evidence in the COT and Bank Participation Reports, there would be no allegation of a market corner to be made. But the data clearly indicate that JPMorgan holds 25% of the total true net open interest in COMEX gold futures and no one can refute that degree of market share wouldn’t constitute a corner on any market."

If so, this will prove to add some interesting fuel for the fire to the upside. I am watching to see if we form a massive inverse head and shoulders bottom with the formation of a right shoulder and then a breakout through the neck, with a target in the $2,000s.

Well, let's see if at some point we get a triple digit gain day and break the no more than 2% up in one day rule.

If so, then silver should be capable of generating some fairly impressive shock and awe to the upside of its own.