SLV. TOP.

Posted on Apr 27, 2011 by in Letters

This looks like a top in silver to us.  So we sold our silver trade — note, trade, not investment.  We took 40% profits in our account.  In our sons’ accounts we took profits of 180% and 192%.  Our sons are better traders than we are (actually we just sort of trend trade their account and that is really more effective than what we do for amusement –which is trade too much.  Nonetheless it is indicative of the relative returns over the long term of trending versus trading.

Here is how we analyze the chart.  The volume is climactic.  You could almost make the trade based on that.  On the top day –as we interpret it — there is a big gap which is filled during the day with a black power bar.  The ambiguity is furnished by the long tail or shadow, meaning some traders saw it fall off and bid it back up, so it didn’t close on its low.  But the next day it gapped down from the close on heavy volume.

Looks like a top.  Quacks like a top.  Must be a duck.

If this is not a top, but just a feint to spook nervous duck hunters like ourselves sell the ranch and Cadillac and the old lady and the Rolex and put it all into silver, because the next satellite launch will be fueled by silver.

Gold which often correlates closely with silver does not show the same top signs.

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