There are some cycles that say silver will top this week, and then we have futures expiration next Monday. As mentioned before, options expiration is this Wed.

Considering the signs of silver lease rates at high levels, March contract holders not rolling over, backwardation, and another one I didn’t mention before - when the COMEX raised margin rates on Friday, prices did not decline but instead went up!! - it looks like the action could be explosive this week.

Here are some other blogs that discuss all this. This first one gives price targets and what might happen on Tuesday in terms of a pullback:

[1] http://www.gunner24.com/newsletter-archive/february-2011/20022011/

Well, in Asian trading silver is already up to $33.10 to $33.20, so the first quick resistance has been hit and then the bullion banks might drive things down on Tuesday to $32.30 to 32.50

This next one gives some targets for a pullback, including $32.20:

[2] http://tfmetalsreport.blogspot.com/

Then here is a knowledgeable look at lease rates, open interest and the COT breakdown:

[3] http://harveyorgan.blogspot.com/

Finally, Dan Norcini of Jim Sinclair fame has his own site now and he just posted an explanation of what really happens in a short squeeze, giving some examples of other commodities that went through this in recent years:

[4] http://traderdannorcini.blogspot.com/2011/02/what-is-commercial-signal-failure.html

I like what the Gunner24 guys are saying: don’t get too greedy with silver. It’s pretty darn volatile stuff and JP Morgan might be staking their existence on what happens. Meaning, $34 to 35 is a reasonable target for this move up. Then we’ll see what happens in March.