Silver setting up a long term buy signal

BATS:PSLV   Sprott Physical Silver Trust ETV
Note the chart and how I suggest entering this market. The market has to be a bit lower in order to provide the entry. However, I would suggest selling puts against cash, which is also known as "covered puts". I have recommended this before and it turned out successfully. If you search SLV here at Tradingview you will see my other charts on SLV .

I like to layer the put strikes across the months and the prices I have outlined here.

Selling December 12 puts.
Selling February 13 puts.
Selling March 14 puts.
Selling April 15 puts.

I haven't checked to confirm that all of these options are available, but you get the idea. If you are unfamiliar with options and this is uncomfortable for you, then I suggest reading about it and learning. I'd be happy to teach you.

Either way, this is a long term trade that projects out six months in total. I believe the stop loss is acceptable at roughly a 75% retracement of the current advance from the low near $11 this summer.

Now that we have had a nice selloff after QE infinity was announced, I'm imagining a slow rebuilding process that occurs over the next few months where people essentially forget about silver and gold , but during that time long term buyers will accumulate their positions and the market will be set-up for the next big advance into mid-year next year. I think it could happen no matter who chosen as President of the U. S.A.


Tim 5:11PM EST, Thursday, October 18, 2012

Subscribe to my indicator package KEY HIDDEN LEVELS $10/mo or $100/year and join me in the trading room KEY HIDDEN LEVELS here at TradingView.com

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.