Replies to post #23197 on The TradingEdge

[Mike_Mac]

SilverSurfer-- on S&P & Silver -- 1 question, 2 inputs for you--

Question: do you have some projected buy points on Silver that you are working too?

Input 1 (S&P):
--The S&P chart you provided a really nice reminder that despite the typical grind we are in, we are actually sporting an inverse head and shoulders. I still expect some whipsaw in the markets as bull vs bear action works out -- but a lot of action points that mid to longer term, bull case will likely take over.

--However, short to mid term we are still in a slog, and likely very nice scalps to short and long side for a bit longer (as a for instance, I'm looking to go selectively short tomorrow or next day...but not looking to be 'all in" on either side of the ledger... At any rate...just liked the chart and thanks for providing to group.

Input 2 (Silver):
--I've been bearish on Silver and looking more to GDX, GDXJ and NUGT as logical buys given that they seem to be overly hammered.

When looking at Silver Chart, the daily tending to indicating decent support at 26-27 level on Silver but so far failing inverse head and shoulders back to late Sept 2011, so may retest support at approx $25 in Jan 2011.

--Also, when looking at mountain type top in April to May 2011 (from $30-48), chart still seems to indicate that this is just too tough of a slog to get through for the short to mid term. So risk that $25 could be violated in time...but not as sure here (a lot can change in a few weeks in the world markets)

--Underlying technicals as well seem to indicate that consolidation in Silver not done (and Copper appears to be indicating same).

-Perhaps other places to look first include Platinum/Palladium, Rare earths and Gold (as it finds lower support).

-At any rate, I cannot find much encouraging about the Silver chart at moment, and thinking it really needs a much better price/vol thrust to upside than we have seen so far to get that trade going again. Given that, I'm looking first to other metals, and the gold/silver miners (and thinking I'll look at going long Silver and Gold as they put in a more definitive bottom or perhaps a nice reversal candle on weekly or monthly. Right now just fining it hard to get a good angle on going long Gold and Silver (other than for very short term scalps to upside)