Tuesday, November 16, 2010

Trade Update: SLV

You are looking at a six month chart of the SLV, but the last three months really tell the story. We bought the shares broke from $18 and ran like escape convicts to $26 before being temporally corralled at $28 zone. About three days ago I put the stops in at $24.44. I thought that we were sufficiently far away from the market to prevent what happened yesterday, namely being stopped out to the penny. But yesterday the market came right down to $24.44 and went back up. Is the SLV on a new tear? Someday. But just when I can't tell. Here are the usual suspects. First the stochastics are turning back up from deep in the oversold zone. Second the shares are poised to bounce off the 20 dma, a good sign. But now is not the time to get back in. I want the shares to at least break the overhead resistance at $26. Right now I am just looking for more information.

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