Market Timing Update: The Silver Rally and the Fear of the Disappearance of Fear

Market Timing SLV for 7-28-2011

The silver ETF (SLV) is still in rally mode as the chart shows.  Take a look at it below and then look at the comments below it.

Chart courtesy of FreeStockCharts.com provided by Worden Brothers.

slv-chart-2011-07-28-1

SLV Silver ETF Chart for 7-28-2011

SLV has failed to hold the last breakout above the horizontal white line.  It is starting to move down to test support at the prior breakout which is shown as the red line.  The red line is the same level as the high marked by the green arrow on the left (37.90).  The fact that the higher, second breakout has not held is fine, but if SLV falls below the red line, even on an intraday basis, it could fall back toward the May/June lows.  It’s possible that it could ease back to the 50 day moving average and resume its rise.

Practical Investing/Trading Pointers: You may want to use a stop somewhere below the prior breakout area (37.72 to 37.90 (37.90 is at green arrow)).  If you are a long term silver bull, you may decide to hold unless the May and June lows are breached.  And yes, I know that some of you will hold through a much deeper correction.  If so, you can look at various support levels as places to add perhaps using a stop for new positions and leaving your core holdings alone.

If gold also interests you, please see my GLDTracker ™ here: GLD Tracker™  Sometimes I post on gold on this site as part of my Market Timing Briefs.

If you “liked” this post, could you please “Like” it below at the blue plus sign and ReTweet it?  Thanks.  I appreciate your support.  And if you have any comments about the silver market be sure to leave them below.

Standard Disclaimer: Remember, it’s your money and your decision as to how to invest it.

© 2011 Wall Street Sun and Storm Report, LLC All rights reserved.

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