SILVER

Like gold, the silver market has started out on a weaker footing, but it does seem as if the silver market was able to hold a large portion of last Friday's steep gains. With across the board weakness in the metals complex to start today and ongoing weakness in many global equity markets, it would seem like the silver trade remains concerned about the global economy. The Commitments of Traders Futures and Options report as of May 29th for Silver showed Non-Commercial traders were net long 11,920 contracts, a decrease of 417 contracts. The Commercial traders were net short 18,374 contracts, an increase of 864 contracts. The Non-reportable traders were net long 6,456 contracts, an increase of 1,283 contracts. Non-Commercial and Non-reportable combined traders held a net long position of 18,376 contracts. This represents an increase of 866 contracts in the net long position held by these traders. Some players are suggesting that the silver net spec long position was mostly liquidated at last week's lows, as July silver to last week's lows, was as much as 82 cents an ounce below the level where the COT positioning was measured. However, like gold, silver might attempt to garner some lift from central bank easing expectations into the Wednesday and Thursday time frame. Comex Silver Stocks were 143.150 million ounces up 701,262 ounces. Comex Silver Stocks are now at the highest levels since 08/06/2008. Silver stocks have increased in 11 of the last 20 days. While the silver market looks to start out with a slightly weak bias, last week's bounce seems to have tempered the recent pattern of overt price weakness, which appears to have been mostly the result of ongoing talk of global slowing. In other words, a portion of the slowing vibe is being countervailed by increased central bank easing expectations, which some traders think might be seen as early as this coming Wednesday. Initial support in July silver this morning is seen at $28.19, with somewhat lower support pegged down at $27.98. In order to alter the negative initial bias this morning, probably requires a rebound back above $28.51.