Wednesday, June 15, 2011

06.15.2011




The silver market ended the day at $35.82 and really stayed flat today as the broad market indices kept retracing lower. This current trading range is boring and I am going to stop focusing on the short term unless it becomes really important. It is important to be aware of the short term when looking for buy and sell signals. My outlook on this market is that we have been in a thirty year dip and therefore its very scary to sell any silver at this moment. I explained this a few weeks ago and will do another soon on dips, because on this chart, I would have had a hard time buying past $13.00 an ounce in 1979 because it was soaring n a spectacular bull market reaching areas never seen before as I wait for a pullback. The pullback occurred in 1980 and its been a thirty year pullback as the methodology that I use for buying pullbacks is to buy on the way down all the way up until it has a decent enough gain past the previous highs. In this case the gain should be over $100.00 and because I don't want to buy at the top of a market I would probably want to not be a buyer above $75.00. Once the market goes to $100.00 then the peak areas come into play as possible areas to sell on a technical level. On a fundamental level the currency is dying and I would rather sell my silver like I sell my fiat dollars today and that is to buy stuff with it when its accepted as cash and thus use the charts to buy more silver. I have not bought a single microgram of silver in about a month and I will stay on the sidelines until I can get a break below $30.00 or a move that shows a confirmation break above the $39.00

No comments:

Post a Comment