Big Al and Trader Rog answer a question from listener Brad C
Click download link to listen on this device: Download Show
I decided to sell some silver on this bounce. I put one 1 kilo Kookaburra coin (I have several) on eBay. It’s fetching £860. That’s nearly £27 or $43 an ounce. I am gonna take the money and run!
I was thinking of selling 1/5 to 1/4 of my silver so I am in for a Casey free ride on the rest, bought mostly under $12. I think a lot of people might be doing that. There’s no point in being a riverboat gambler and being all in.
Thankyou for your good knowledge of technicl analysis. I depend on Roger and Al, every day, as I am old and tired, and they save me energy. My strategy is simple. Sell covered calls on my metal stocks, when I think correction is near, and buy them back for a profit, or let them expire worthless. Works for a simple old country boy. Thank you roger, Big Al, and all commenters.
Thanks for the comment. I am not even really a trader, don’t have enough money to do covered calls! I just been fascinated by this market since 2001, since reading Austrian economist Peter Warburton’s book ‘Debt & Delusion’.
There’s a Head and Shoulders forming now in silver with a potential target of $21. So it’s a testing time! Three analyses, 3 targets: $22.77, $21.00 and $24.20 :
http://1000gold.blogspot.com/2011/05/silver-2277-target-i-hope-not-2011-05.html
Ross Clark has another great talk on silver this week on Howestreet in the other Vancouver:
http://talkdigitalnetwork.com/2011/05/silver-consistent-history/
He thinks it’s crucial for silver to hold £33. If so then it has a chance of going to $73 later in the year, mirrioring the $9 to $49 move of the last 3 years, starting at $33. HOWEVER… if it doesn’t hold $33 … then a 61.8% retracement of the last 3 year rally is due. That’s the message I got from Ross’ broadcast.
Silver $22.77 target? Hope not!
I saw gold and silver both slowing down in their rally yesterday. Gold was approaching very near its 50% retracement of the downmove, at $1520.19 on my chart and silver near a 38.2% Fibonacci retracement of its down move, at $39.43. Both looking a bit toppy. Interestingly, these Fib leves were also support and resistance where short-lived trading ranges occured in gold and silver on 5th May 2011 inthe morning. I fancied going short on a spreadbet but didn’t want to gamble really.
Gold went just beyond the 50% Fib target to 1528 and silver turned almost exactly on its 38.2% Fib target at $39.52 intraday, within 9 cents. Now its Wednesday and both have turned down from these points.
Do you think silver is going below the $33 low to form a big A-B-C correction? A 38.2% upside retracement of the $49.75 to $33 crash is very stingy, nowhere near enough to foem a nice bullish flag. An equal sized downleg of $16.75 would take the pirce from this interim high of $39.52 to $22.77 if that occurred!