Thursday, November 4, 2010

We are back up again!

We are back up again and I am sorry to keep this page vacant for some time. I needed a little rest from the blog and I have been saying to people that this silver rally does not impress me much. This is because it was only at $24 area. That was the Fibonacci level that it pierced above and then found great support at a hair under $23.00. The $32 level I have been talking about for a couple years now is starting to come to reality, and even this level is only the first decent expected hit. We are at a shade below $26.25 as of this blog and if you are a very short term trader it might be time to buy some option puts as well as a quick short with a sell target at $25.25 or $25.75 if your tight. Place your stop accordingly to your reward structure if you choose to use fibonacci again to sell. For a stop, a shade over $26.50 because of the 50 basis point psychology. The bulls on the short term could easily have another pull, and when you short on this bull run it is well advised to fish for profits if you get them. On the long term time frame $25.00 is the stop most expected.

Of course this day trading stuff and thus gambling. If you choose to do it, I advice to make your ideas my own which actually are ideas from Brian Shannon because Brian says or has said in his previous videos the same in making your ideas your own. What I do is take bits and pieces from many different sources in making them my own. Usually these big levels have acted well as resistance and support in the past and all the past key levels have usually been over shaded by a decent surplus on expected amounts. If this is the case then $26.75 to $27 will be resistance by morning New York time. By taking any bits or pieces from this and making them into your ideas is what I strongly suggest. With that said Silver has had its move and the hourly chart on finviz on the right hand side has nice looking charts on all time frames.

The image on top will be changed some how. If anyone knows of any good way I can put some cool javascript of data and charts, please let me know as it would be better because it would be live as well as automated. Most likely I will just type a few paragraphs a day and post a few charts and embed some videos.

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