timwest

Silver setting up a long term buy signal

Long
BATS:PSLV   Sprott Physical Silver Trust ETV
1
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.

Cheers.

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

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