Watch for a big reversal day to exit. Correction will be big when it comes, however, upside is likely still very significant from here, we're in the parabolic phase. That +10% day is probably soon upon us. Silver is 30%+ in the last one month since I made the posting. Sadly, EUR is just starting to move (hopefully).
My first post on Elite Trader. Silver is so exciting I feel young again. Long time ago ,when I was young and smart, silver went to $50 and Beans above $12 in runaway markets such as these may be. One of my rules to trading a runaway market is to buy the second day of a break (Friday?) at the close, as long as the high of the day is no higher than the low of the day two days ago (Wednesday). Stop would be below Fridays low for next week. Not too many people trading today realize what potential these markets may have. To think that silver has topped is foolish. This is only the first serious break we've had. Have an open mind. BEST OF LUCK TO ALL
I sold in the melee today in the high $13s on stops. I'm re-entering a little bit now in the overnights low $12s but will generally wait for some stability to load the boat again. I'll probably end up buying higher than these levels because this market is not going to allow re-entry smoothly and easily. These first few corrections at the beginning of a major trend can be vicious. As the trend becomes more established, the corrections will be shallower and fewer. I think this bull market in Silver is here to stay and $12 silver will look like a steal a few months/year out. This is most likely a short term top but almost definately not the end of this trend IMO.
Tomorrow should be interesting, I wouldn't be at all suprised to see it drop further, judging by the action in GLD today.
IMO silver is still overloaded with speculative longs. After parabolic price action like that, you normally get a correction of more than 1-2 days. Typically the market will go down enough to really flush out the longs, and the natural level for that to happen is below $10. You can bet not everyone has bailed in the last 48 hours. So I'd expect silver to hit $9.50-9.99 at some point. Then it *may* be a good spot to enter once the down momentum stops. If I'm wrong, then the market should reverse and make a significant new high. If you look at the last major move, from $5 to $8.30ish, it puked back down to $5.50 and stagnated for months before resuming to new highs. The reason was there were just too many damn longs and they needed to be washed out. As always, no one has crystal ball, but my instinct tells me wait till the price goes below $10 and maybe consolidates for a few months before a new bull phase resumes. The other case is if the market violently reverses and a new high is made fairly soon, in which case start scaling in on new highs and use a close trailing stop.