Again, the traders were closely watching the action in silver, after the shiny metal slid sharply for a third straight session.
Sentiment turned quite bearish after a reports suggested that billionaire investors George Soros, as well as Carlos Slim and some other influential investors had started paring down positions in silver as well as gold.
Adding to the downward momentum, the CME again raised margin requirements.
Considering the sharp moves, is there a trade here? Or should you run the other direction?
Guy Adami says "I promise you this. There are very few people making money trading silver now. The easy money has been made."
Joe Terranova adds that if you were overweight silver, the trade has ended. But that's not to say there isn't opportunity.
He suggests keeping an eye on the 50-day moving average. "If silver makes a move below the 50-day, you're going to get a market that bottoms out," he says. If and when that happens, "Once it snaps back above the 50-day, you'll have a point of reference."
Top BofA strategist Mary Ann Bartels seems to share Terranova's bias that in the long-term silver is heading higher.
She calls the recent pullback a ‘healthy correction’ and forecasts silver could again touch $50 this year and over the next 2-3 years could trade up to $80.
Trader Steve Cortes is on the other side completely. He thinks the break in silver is material and that the reversal will have an impact far beyond precious metals. “It will have an impact on the whole universe of risk-taking,” he says. “It’s the first of the speculative trades to unwind and will probably pull other markets down with it.”
And on a related note, if you're trading silver with the SLV you won't want to miss our conversation with Noel Archard, iShares managing director. He talks candidly about the criticsm that the ETF causes supply / demand imbalances.
It's an interview every investor should see. Watch the video now!