MLR - Silver intermediate term tops
Silver ETF SLV had five huge volume reversals since it started its run in late August 2010:
Oct 7, 2010 -2.95%
Nov 9, 2010 -3.57% 149.1 million shares, record volume
Dec 7, 2010 -4.85%
Mar 24, 2011 -0.96%
April 11, 2011 -1.63%
Each time, a huge volume spike occurred.
In all but the first case shown above, silver took a brief pause then moved higher again.
Today's volume is already exceeding 100 million shares only 2 hours into the trading day. Record volume exceeding 200 million shares is likely.
For the swashbucklers out there, 2-times inverse silver ETF ZSL could possibly be traded for a quick gain, but keep in mind, the volatility in ZSL is huge and not for the faint of heart.
Also, the fundamentals remain intact for silver to move higher after it takes a brief rest. China is supporting the US dollar as it is at critical levels but whenever central banks support a falling currency, that support is almost always short lived. Just ask Jim Rogers who's made fortunes by fading central bank movements. So the secular bull in precious metals is intact until something material changes. In the short run, a swing trade in ZSL is possible but handle with care.
This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.