Some huge offers coming across around 41.80, similar to the huge bids that were taking place at 49.6 in the middle of the night. Looks like heavy liquidation at these levels.
I think it will consolidate back 37-38 over the next few days/weeks. This is a gigantic flush though, not unlike what we used to see in gold back in that 2005-08 run-up that would scare the hell out of everyone in the metals.
I've been a long term bull in precious metals but I can see silver dropping another $10 from here to around $30. If that happens I also expect other commodities to start seeing hefty liquidation. This correction looks like more than a dip to me, more like a change in trend. It's now day three and we're not seeing a bounce. Took out $40 level with ease. If you are long from last week are you going to want to hold into this weekend? At the very least you might want to lighten up to account for the larger daily price swings.
I'm long and strong. Even if silver goes to 25$, I'm a buyer. Come to think of it, it'd be great if SLV went to 20$. Get it for half price! Fundamentals are a slam dunk. The USD is toast. A wicked pullback, but a pullback nonetheless. I'm waiting until we get a bull trend on the hourly. Then add tentative longs.