Silver Through $36

March 7th, 2011

WARNING: This is not a recommendation to buy, sell or hold any financial instrument.

$36.17

Posted in Economy | Top Of Page

4 Responses to “Silver Through $36”

  1. tito says:
    March 7, 2011 at 3:08 am

    What’s it going to hit first, 20 or 50 bucks an ounce?

  2. Kevin says:
    March 7, 2011 at 4:05 am

    You make an excellent point!

    When I’ve asked myself similar questions on other trades, I either get out completely, pare my position way down, or start setting increasingly tight stops. Protective put options are another way of going for some traders.

    But if people are holding physical silver (I am), I hope that they look at it more in terms of a strategic asset for financial contingency planning, rather than speculation on a blinking number that’s updating in real time. It’s an important distinction.

    So, for someone who has allocated for purposes of financial contingency planning, the answer to the $20 or $50 from here question is: Who cares?

    If you forced me to guess, I’d say $50 is more likely to be reached before $20, but not before a lot of people get whipsawed to death along the way. (When you’re dealing with charts that are going vertical—on the weekly… Watch the F out. In general, it’s a good idea to take short term profits when charts look like this). Looking at the longer term picture, though, it’s hard to see how it gets to $20 first. There is a lot of support built into that chart (going back years) that leads me to guess that $20 will be tough to reach first.

  3. Bigelow says:
    March 7, 2011 at 8:09 am

    “So, for someone who has allocated for purposes of financial contingency planning, the answer to the $20 or $50 from here question is: Who cares?”

    As Richard Russell would say, its not the amount of dollars, its the amount of ounces.

  4. dagobaz says:
    March 7, 2011 at 10:02 pm

    use a trailing stop … in my case, I like 13 %, or just under the last major support, on the daily chart.

    or

    you could make use of percentage-of-position profit taking, >= to 40 % at t1 >= 40 % at t2, then trail the rest. free trade on the squid’s dime, ya just have to love that .

    cybele

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