Wednesday, July 13, 2011

Live Trade: SLV

We are taking half a position in SLV at $36.98. This is risky because the stochastics are very oversold and turning down. But we do not trade on stochastics we trade on stock price. You can see on the chart how the price gapped up today above $36 and above 100 day moving average. The 100 day moving average has provided reasonable support for the last year. So, we will continue to be guided by it. Take half the position right here at $36.98 and sold the stop at the 100 day moving average of $35.16.

I do not believe that silver is making another leg up here. But what I believe does not matter nor do I trade it. The market is my master and that is what I obey. I would rather stopped out a small loss then let SLV get away from us here.

Buy 50 shares of SLV at $36.98.
Stop at $35.16.

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