iShares Silver Trust (SLV)

[JLS]

Correlation between SLV and Dow?

The only correlations I've seen with Silver is Gold, and there is somewhat of an inverse relationship to the Dollar, $USD, for the last six weeks. There is no correlation (inverse or otherwise) with the Dow.

Normally I wouldn't make a trade like this with its short duration because there is not enough time value to be able to do a spread even when using the adjacent strike. But, looking at the inverse relationship of $USD and SLV, there appeared to be an opportunity for a short-duration trade as the Dollar rises up from a short-term bottom as shown in the chart below.

The other reason for not doing this trade is because SLV is now trading at a price where it has recently traded flat for rather long periods of time as can also be seen in the chart below.

But what encouraged me to go ahead with the trade is the inverse relationship with $USD over the last few weeks. There appeared to be enough time left in the week for the dollar to rise up to resistance at $92.75, and at that time the short-silver trade could have a small profit. Unfortunately, $USD reversed and went down today. But it also did that for a single day a few days ago, so maybe it reverses again on Thursday and continues higher on both Thursday and Friday toward $92.75, and the SLV trade ekes out a small profit.