Wednesday, March 11, 2009
Silver Short Position Continues to Look Good; March 11, 2009
Silver continues to fall in 5 waves and rallies in slow, choppy, overlapping waves. The MACD and stochastics are showing a bearish divergence at the tail end of this rally today and it's barely moves a few percentage points to the upside. Once this correction is complete, it will lead to very heavy selling. I remain short and I'm well into a very nice profit as I essentially nailed a top in this metal.
I also have a short gold position on as well. Gold's EWP structure is not as clear as silver's so I'm just posting silver.
As for the stock market, the rally that started yesterday should have some follow through in the next day or so. The market should charge toward the 770 area before meeting resistance and rolling back down to lower levels. We should see one more new low on the year before this big cycle of selling over the past 18 months ends. I have a very small long position on right now with a stop at the S&P 675 area. I will look to enter a strong short position if the opportunity presents itself.