Unless you are trading the precious metals that is. I have to say I am shocked to see Silver down 15%!!! In any case, Silver just hit some very key support. This is a buying opportunity. I am long Silver via the SLV at $29.55
Note: See comments below to follow this trade.
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Any longs here must be careful defending the position. For me I am scaling in so that if it dips further I can add to my position. SLV has the chance to move as low as $26. I don't think it will happen in the near term, but then again, I didn't think Silver would be down more than 15% today either...
ReplyDeleteI haven't back-checked the data, but I assume this is the largest two day price decline in the history of the silver trade. Because of the extreme nature of the move, there is no telling if it could move lower. However, I always like the adage, buy when others are fearful...
ReplyDeleteSilver Futures have taken a beating overnight with the December contract trading as low as $26.15 (which would be around $25.45 on the SLV).
ReplyDeleteWhile I would have preferred at least a small bounce today before seeing Silver continue its slide, the unabated move lower is not a complete surprise. This is why I only scaled into the position on Friday. The key when aggressively entering a position like this, is to have cash available. I expect Silver will be making a base very soon. The overnight lows mark another level of good support. Lets see if it holds. I am willing to scale in to this position all the way down to the low $20s. I will post any updates to my position as they happen...
Volatility in Silver continues as Futures have rallied more than 16% off today's lows. My SLV position has moved back to my entry. I will continue to hold it.
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