SILVER

The silver market saw some lift in the aftermath of the Chinese PMI data, but the May silver contract wasn't able to definitively break above Friday's highs. With gold and other physical commodity markets somewhat undermined by fears of slowing from Euro zone and from French numbers overnight, it is clear that macro economic doubt generally remains a fixture in the marketplace. Silver might be seeing some minor drag this morning from news last week of rising silver production from Mexico and the silver market might also be partially undermined because of the ongoing Indian Jewelers strike. As in the gold market, portions of the silver market might begin to look ahead to the US monthly non farm payroll reading later this week for guidance, as the direction of the global economy might be heavily dependant on the health of the US economy. Some traders have continued to point to silver's relatively stronger performance over gold in the 1st quarter, as a possible sign that silver is capable of gaining consistently on gold in the coming quarter. Comex Silver Stocks were 137.073 million ounces down 37,687 ounces. Silver stocks have increased 14 of the last 20 days. The Commitments of Traders Futures and Options report as of March 27th for Silver showed Non-Commercial traders were net long 21,916 contracts, a decrease of 3,293 contracts. The Commercial traders were net short 33,819 contracts, a decrease of 3,145 contracts. The Non-reportable traders were net long 11,903 contracts, an increase of 148 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 33,819 contracts. This represents a decrease of 3,145 contracts in the net long position held by these traders. A quasi double top in the early trade silver today would seem to provide a layer of resistance in the May silver contract up at $32.62 today. However, predicting silver price direction today is close to splitting hairs, as the silver trade is lacking a definitive macro economic view. On the other hand, we might expect silver to see some benefit from the flow of scheduled US data, especially if that news prompts a slide in the dollar. Silver is a physical commodity market that looks to take a lot of direction from the ebb and flow of equity prices. An up trend channel support line is seen in May silver today down at $31.84 and that support line rises to $31.95 on Tuesday.