My rational behind this was I truly believed that silver had bottomed at the $17 level (which has proved to have been correct so far), and that it would bounce back over $18 in the next few months (which it is still on track for). I had also believed that because silver has an actual use in this world (compared to gold ), that it would be the stronger PM by % in the next handful of months (which is still a possibility).
However, my silver miners have been lagging behind my gold miners significantly, causing me immense frustration over the past few weeks (perhaps I have the wrong stock, I don't know). I still have hope for silver to start catching up to gold's %'s on the year, and having this trade pay off.
It is currently making higher daily lows on it's current trend-line, however it really hasn't made any significant moves. I believe that we potentially see 18 this week, depending on whether or not silver continues it's momentum ( rising), and whether or not we catch some help from the NFP report on Friday (or some more help from Clinton). I believe it will continue to move up along this trend-line.
Will silver change from the ugly-step sister and become Cinderella? Stay tuned...
To all my friends out there that own silver miners, today was a profitable day for us, and hopefully it is the first of many to come. Today has successfully waned my frustration of holding silver miners over the past few weeks.
The RSI on this baby is ramping up, and IMO I believe 18 will be seen this week, effectively negating any bearish views on silver. A clean break of 18 will turn this ugly step-sister into Cinderella.
Patience is key with this one.
I believe we could see this over the course of the week, depending on the jobs report, and whatever BS the fed decides to say. But this was a very encouraging day, given that we were able to hold onto our gains.
This will be a big week for silver.
We closed above all EMA's, which is very significant. We had a small sell-off at the end of the day that didn't catch on, as it was just retailers getting the jitters.
Target of a close over $18.700 still in tact for the week.