There has been a large amount of Internet traffic this pass week about JP Morgan being naked short Silver, most of this started by the same companies that Buy and Sell Precious Metals. Many think that if they buy Silver, somehow that will force JPM into bankruptcy because they are being reported as being massively naked short Silver. Something stinks about this because JPM is not stupid, these large Financials Companies win no mater what happens to the price of Silver. Here is a great article about this from zloj from the Motley Fools CAPS page, and well worth reading.
The SPX could find no mojo today and went nowhere. The Russell 2000 fared much better and closed up 0.59%. The biggies where in the metals, with Gold up 1.42%, and Silver up a whopping 3.25% and over a buck higher from the open. I did post a Silver chart in this mornings post showing the strong move since early August. For such a large move in metals, one would expect a strong sell-off in the Dollar, but that is not what happened, the Dollar closed UP, 0.28%. This is looking more like a run to Safety in the precious metals and not the result of currencies. Strange relationship today.