Position: EDZ
Closed out the silver short yesterday on weakness. Felt relief to be out of it and couldn't believe I took the trade to begin with. "How foolish could I have been?" I thought to myself. The real levels that mean anything are 30 and 34. Any movements between those two levels are just noise. Then today happens. We now have a mini downtrend in place after a major battle around yesterday's price low. I did not think we could get a close under there this week; what with the farce of a joke of a news item coming out of Europe not until the market closes tomorrow. Well that's what usually happens when I try to tell the future instead of just watching the charts and reacting to what actually happens. I would be ok with being short here, but I still think 30 is way more important. I shorted the emerging markets because they are the weakest market and they just fell off of a little price shelf that they had been holding all week. Could it be that the market knows something about the Europe news and doesn't like it? If we break right back into that trading range and close there I think we'll see short covering and that could fuel a rally. The charts, both daily and intraday however do not look at all bullish in my opinion. I still don't have a rock solid sell signal on the market but after a bounce if we turn down again, it could get ugly for the bulls. The weekly charts show the obvious new low and what appears to be a lower high for now. After the big white pretty bar of last week, this week has failed to follow through, but you can't blame the bulls for needing a breather; they pulled out a massive can of whoop ass last week. All I know is October's low better hold if we ever get there.
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