Feel the pain

Position: short SLV

Well, we opened weaker but right at a support level. Those who shorted at the open along with weak hands who shorted yesterday were forced to cover and we simply accelerated up from there. The up move appears to be a back test of the 32 level which SLV keeps butting up against. We finally saw some sellers come in around 32 which is pretty obvious resistance. The way I see it we went down and made a new low and now we swung back up perhaps to a lower high. Today's low will now be pivotal of course because a break of it would confirm a downtrend. That is where I screwed up because I did not wait for the classic " make a new low then come down and take out that low to confirm a downtrend". I must admit I jumped the gun on this one. I think today's low at 30.75 will not be breached before the big news coming out of Europe after the market close Friday. I think Monday morning we will either gap strongly above 32 or below today's low either move will result in an acceleration either way. For now I am only staying short because the stock market is so over extended to the upside and all we did today was go back up to resistance. Chalk this one up to a screw up and hopefully recoup some of the losses and more than likely go into the weekend flat.