Compiled 02/29/12 6:00 AM (CT) Statistics: London Gold Fix $1,788.00 +$13.25 LME Copper Stocks 296,425 tons -2,425 tons SILVER MARKET FUNDAMENTALS: (6:00 AM CT) Once again the silver market appears to be capable of out performing the gold market, as the March silver contract in the early US trade managed another upside breakout on the charts, while the gold contract simply consolidated below yesterday's highs. Silver and other physical commodity markets were probably benefited as a result of the European LTRO and also because of mostly positive early global equity market action overnight. However, scheduled economic data overnight might have hinted at ongoing slowing in Germany and India and that in turn seems to have tempered the risk-on vibe that was anticipated from the latest European liquidity fix. Silver might be drafting some support from news of an upside breakout in the physical holdings of silver held by a derivative silver instrument yesterday afternoon. In the end, seeing the silver contract manage the highest trade since last September suggests that the bull camp had an edge, but the positive buzz from European news flow doesn't seem to be self propagating. Like gold, the silver trade would seem to need something positive from the scheduled US data, but the data today doesn't look to be overly significant. Therefore, silver is likely to turn to dialogue from the Fed to attempt to secure the bull's initial edge. However, Comex Silver Stocks yesterday afternoon were put at 130.623 million ounces for a noted gain of 1,166,273 ounces and that news might discourage some fresh buyers of silver. OUTSIDE MARKET DEVELOPMENTS: (6:00 AM CT) Asian equity markets were higher overnight feeding higher again off the upcoming European LTRO injection. European equity markets were also higher in anticipation of the European liquidity effort. Early US equity market action was showing minimally positive action, partly off anticipation of the ECB action but also because of slightly lower European debt yields. The ECB LTRO offering was apparently slightly higher than some expectations at 529 billion Euros, but the instant reaction was for some softening in European and US equity prices. Some players saw the news of 800 bidders in the LTRO as a sign that more banks needed the money, while others suggest that the success of the prior LTRO simply inspired more players this time around. In looking ahead to the US trade today, the markets will see a weekly mortgage application survey, a US 4th quarter GDP report, a Chicago PMI reading and a Fed Beige book release in the afternoon trade. The market might not see much of a reaction to the US GDP report, because the figure today is a revision, but the market will probably take notice of the Chicago PMI reading which is largely expected to post a slight improvement. There will also be a couple Fed speeches today, with the US Fed Chairman providing semi annual testimony to Congress and that will be capped off later on by the release of the Fed Beige Book.