Silver prices in whip lash mode
Thursday, May 12, 2011 at 02:57AM
Silver Prices in Silver
silver chart 12 May 2011.JPG

As we have said many times this market is not for the fainthearted with silver prices almost doubling since February and coming within a whisker of its all time high of $50.00/oz. Then a severe sell off followed, taking silver prices all the way back to around $35.00/oz. There is nothing like a few changes to the margin requirements to put the skids under a great rally.

As the chart shows the technical indicators are on the floor suggesting that a bounce could be on the cards. The RSI was in the oversold zone when it bounced, all to briefly, off the '30' level before today's trading session which saw another $3.31 or 8.6% knocked off the silver prices.

We had been warning about the oscillations becoming more and more violent as this silver bull developed, but to move as much as $4.00/oz in a single day as taken us by surprise in that this sort of trading range should be a little further down the line. It doesn't seem that long ago that we could purchase an ounce of silver for $4.00, now it can lose or gain that much in a day. Is that a one off event you ask, due to the uniqueness of the past few weeks, we think not. Its now a case of wearing two hard hats and we need to steel ourselves against economic storm clouds that are coming our way.

The European Union will fragment at best and could collapse totally as the unelected Commissioners, who call the shots, have not even a clue of how to manage a party in a brewery. Greece to be first to the life boats and back to their Drachmas, followed by financial hair cuts all round.

Nigel Farage : The TRUTH About The Disastrous EURO Currency!

Tim and Ben 12 May 2011.JPG
Tim and Ben

Meanwhile Timmy Geithner is doing his best to get creative with the US debt, however, as it is standing at $14.3 trillion dollars, fiddling while Rome burns is not going to cut it. A drastic situation calls for drastic action and there isn’t the political will to do the hard yards. Whether or not we have a QE3 hardly matters now, the cake is in the oven and it is only a matter of time before we see the penny drop with more and more of the investment crowd and then the general public. It wont happen tomorrow, but the march north by both silver and gold prices will be relentless.

So, dig in, get into position, continue to layer into physical silver and those quality silver producers that you have always wanted to own, because, by the time New Years Eve comes around, these current prices will be a thing of the past.

We recently reported that had closed another two trades for profits of 108.52% and 116.67% respectively, this was followed with two more profitable trades so the chart and stats have been updated accordingly.

Over in the Options pit, our model portfolio has achieved an average return of 41.92% per trade, 78 closed trades, 76 closed at a profit, or a 97.43% success rate. Average trade open for 46.45 days.

sk chart 04 May 2011.JPG

The above progress chart shows our performance when profits are re-invested, however, to see exactly how it is going, please click this link.

So, the question is: Are you going to make the decision to join us today.

Stay on your toes and have a good one.

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