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« Silver Wheaton Corporation Call Options Update 06 October 2010 | Main | Silver Wheaton Corporation on BNN Today »

Silver prices trending upwards

Silver Chart 04 October 2010.JPG

Silver prices are making steady progress and the short term trend remains intact. The technical indicators are in the overbought zone as we can see the RSI is at '82' and the MACD and the STO are banging their heads on their respective ceilings causing anxiety for some.

It is difficult to stay with this trend when the indicators are suggesting otherwise. Also against further progress are the seasonality considerations when usually both silver and gold prices take a breather and consolidate until around say mid November. On the positive side of this equation we have silver which is nowhere near its all time high, but it has surpassed its recent high made sometime ago to enter into uncharted waters with not too much in the way of resistance ahead of it. It all boils down to the technical analysis versus the fundamentals. As it stands we are leaning towards the fundamentals coming out on top. The major currencies are flawed and embattled within a race to see who can get to the bottom first and the US Dollar is currently in pole position. The euro and other currencies experience the occasional bounce but when compared with the metals they are still in a downward trend.

Our position at the moment is to hold onto our stock and also to our Call Options. Should we experience a pull back we think it will be a short and shallow one before this rally continues. If it does happen then we will be tempted to 'buy' once again. As regular readers will know, we do not own any stock of the general kind found in the major indices, we are totally focused on this sector of the market. We do have some opportunity cash on hand and if a dip does occur we will probably use it to increase our exposure which could take us up to being 'all in.' So, as you can see our approach is very aggressive and not everyone's cup of tea, however, this is a bull market and we want to maximize our profits.

Talking of profits, over in our options trading den they have closed their latest trade which generated a profit of 50% in 30 days on GLD Call Options, so they have updated their progress chart, yet again, to show all the closed trades as of today, so you can see exactly how it is going, please click this link.

Stay on your toes and have a good one.

Got a comment then please add it to this article, all opinions are welcome and very much appreciated by both our readership and the team here.

On Friday, 27th August 2010, we closed another successful trade banking a profit of 79.46% on Call Options on Silver Wheaton.

The latest trade from our options team was slightly more sophisticated in that we shorted a PUT as follows:

On Friday 7th May our premium options trading service OPTIONTRADER opened a speculative short term trade on GLD Puts, signalling to short sell the $105 May-10 Puts series at $0.09. On Tuesday the 11th May we bought back the puts for just $0.05, making a 44.44% profit in just 4 days, with more positions opened yesterday. Drop by and take a look.

To stay updated on our market commentary, which gold stocks we are buying and why, please subscribe to The Gold Prices Newsletter, completely FREE of charge. Simply click here and enter your email address. (Winners of the GoldDrivers Stock Picking Competition 2007)

For those readers who are also interested in the silver bull market that is currently unfolding, you may want to subscribe to our Free Silver Prices Newsletter.

For those readers who are also interested in the nuclear power sector you may want to subscribe to our Free Uranium Stocks Newsletter, just click here.

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Reader Comments (1)

I have a comment and you may be happy that you did take your opportunity cash, and maximized profits in a new area.
The investement to which I refer is the new in the ground metals area that the high tech world may not be able to live without. It is called Rare Earth Elements. With all due respect to your focus on Gold, Silver, and Uranium, why not add one more which is similar in nature to the other three, as to being a mined product, and in short availability. You are aware of the REE area, but have you read the latest information on how desperate many nations are to get hold of a reliable supply of these elements including the US. Now is the time, so what say you fellas about it?

October 4, 2010 | Unregistered CommenterJohn Ell

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