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Originally posted by Flinty_McFlint
Yes, that's the context. Probably originated with annoying DJ's (like Casey Kasem) reporting on the movement of a Top 40 song going up the chart either quickly, or placing high right off the bat.
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Actually, the phrase originated with the Billboard Hot 100, which indicated a song's first appearance on the chart with a small bullet-shaped symbol. Hence, if a song was high up on the charts "with a bullet" it was generally taken to mean that it was both immediately a wild success and believed to be headed for the #1 slot on the chart.