$SLV at 34, going to look even higher
This is why waiting for a short is so important. The dollar saw another gap down this morning, which means precious metals and commodities got a nice boost. The $SLV gapped up and is trading through 34 at this moment and is looking very strong on the intraday 10 minute chart as moving averages are crossing up.
I am not going to fight the tape, but I sure as hell would not even consider going long this extremely extended chart.
I am looking at 35 which would be a gap fill on the daily chart from both August of 2011 and February of this year. In both instances it saw huge moves downwards afterwards. Let the suckers get squeezed higher. Maybe we will get a trigger later this week or next week. This may even go as high as 36, or at very worst case 38.
There is no rush. Let it get extended and stretched out like a rubber band. If it does top out in this area we will watch for further reversal signals and bearish pattern and then jump on board.
The essense of what I am watching for is a CHANGE IN TREND, not necessarily picking the absolute high. The trend is up. It takes a couple of data points at least to form a trend, and that is true at the highs as well as the lows. If it is putting in a top I will watch closely to see if it actually is a downtrend and then ride the coat tails of institutional selling. Until then, I will just day trade this and other plays taking small bites out of intraday moves.
Safety first.
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