SLV. Silver breaks out. GLD lags behind

Silver broke the dump-bump-dump pattern as indicated at the short down trend line.  We cheated and bought the bottom based on the power bar (not recommended).  Now, for what it is worth silver has broken to a new high.  This is a clear buy signal.  We will be adding on to our position Monday.  We have some misgivings about this, as GLD, gold, is lagging behind and we would like to see it confirm.  The way misgivings are handled is with stops.  The trend stop is set on the Basing Point at January’s low.  Another stop possibility is using the low of the current  high as a Basing Point with of course a filter.  We are using 5%.   Gold is in a short uptrend, having broken the dump-bump-dump pattern.  We’re already long as we cheated the same day we bought silver.  But we won’t be adding on to gold.  We want to see the high taken out first.

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