$SLV SQUEEZE POTENTIALCharts indicate we could be in for another spike, the likes of which we have not seen since the market crash of 2008. All EMAs are converging on the current price point and with a tremendous amount of squeezing to be had in the weeks to come, more and more people will be hedging with silver as the big hedge funds start to take losses. Squeeze indicators show a lot of positive momentum, mirroring the same volume prior to the 2008 spike.
Options in the money currently are adjacent to relative resistance levels are an ideal play in my opinion.
SLV
Silver is the latest market boomYou probably know what happened to GameStop.
The new instrument that has aroused the interest of regular investors is silver.
Yesterday we saw a rise of almost $ 2, but immediately after that the price fell off.
Today we have the opportunity to see a new rise.
Confirmation will be exit from the triangle and a break of the previous peak.
Expectations for higher values can be very high, but the initial targets for silver will be 27.36 and 28.42!
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Platinum over Gold and Silver?Precious metals sold off some but in light of Ms. Yellen moving in to Treasury, a continuation of her currency expansion is likely. To disregard physical precious metals as perhaps the only safe store of wealth seems to be folly. While the gold/silver ratio has fallen from nearly 120:1 down to the mid 70s, Silver is no longer the best value. The Platinum Silver ratio had ranged from 126 down to 33. At it's current 43 level, it does seem like the place place to put new cash.
Hi Ho Silver!
Silver has traded sideways for too long, and you know what they say! "The bigger the base, the higher the space". The gold to silver ratio has been on a gradual but steady downtrend indicating silver's outperformance. Based on my trend lines, it is checking back down from the upper end of the spectrum. This should give silver a boost and I think it is a sign of a comeback.
Janet Yellen spoke about the necessity for a very large stimulus bill, which will only weaken the dollar further and strengthen hard assets like gold and silver. Silver has more alpha and more upside potential. So if you are looking for an inflation hedge and would like more of a runway with more alpha, go long silver. I suggest playing it through SLV.
THE WEEK AHEAD: HAL, NFLX, AA, UAL EARNINGS; EWZ, XLE, SLV, IWMHIGHLY LIQUID OPTIONS SINGLE NAME EARNINGS (LISTED CHRONOLOGICALLY IN ORDER OF ANNOUNCEMENT AND SCREENED FOR >50% 30-DAY IMPLIED):
HAL (13/61/13.9%),* Tuesday, before market open
NFLX (25/50/11.3%), Tuesday, after market close
AA (18/69/15.9%), Wednesday, after market close
UAL (13/64/14.8%), Wednesday, after market close
From a bang for your buck perspective: AA ranks first, UAL, second, followed by NFLX, and HAL.
I already have a covered strangle on in UAL and don't anticipate putting on more single name risk in the IRA (which is my primary focus running into retirement), but will naturally post a play should I get into one.
EXCHANGE-TRADED FUNDS WITH >35% 30-DAY AND RANKED BY THE PERCENTAGE THE FEBRUARY AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
EWZ (18/45/10.3%)
XLE (23/42/9.7%)
SLV (25/42/9.4%)
GDX (12/38/9.2%)
XBI (18/37/8.7%)
KRE (16/36/8.7%)
EWW (15/36/7.5%)
I'm already in everything here but for KRE and EWW (the lowest bangs for your buck on the list) and the February monthly is a bit short in duration here for me (34 days) and March a tad long (62 days), so I may not do much this week in these, although going out to March with another rung in my GDX, SLV, and XBI positions isn't out of the question.
BROAD MARKET RANKED BY 30-DAY IMPLIED:
IWM (24/32/6.8%)
QQQ (22/30/6.4%)
SPY (16/24/4.8%)
DIA (13/23/4.6%)
EFA (14/20/3.8%)
In spite of the fact that IWM and/or RUT have the higher 30-day, I may look at adding a July (181 days) rung to the SPY short put ladder I have on in the IRA, targeting the strike paying at least 1% of the strike price in credit (which would currently be something like the 240), and do the kind of "opportunistic rolling" I've been doing with shorter duration rungs. (See Post Below). Although most frown upon going out this far in time, it's a way to deploy otherwise underutilized buying power that will earn something >0% while I work shorter duration setups or wait for a higher implied volatility environment and/or greater weakness. Additionally, my goals for the IRA are somewhat modest from a return on capital standpoint: I'm not looking to hit homers or be an incredibly attentive investor, opting for a once a week or even a once a month schedule of looking at things, making adjustments as appropriate, and/or taking off stuff approaching worthless that doesn't merit hanging onto due to the amount of time left in the contract.
* -- The first metric is the implied volatility rank or percentile (i.e., where the 30-day is relative to where it's been over the last 52 weeks); the second, thirty day implied; and the third, the percentage the at-the-money short straddle in the February monthly is paying as a function of stock price.
THE WEEK AHEAD: KBH, DAL, ICLN, SLV, EWZ, KRE, XLE, IWM/RUTEARNINGS:
There aren't a ton of earnings next week. Some financials are announcing, but I generally don't play those a ton for volatility contraction, since they never really frisk up that much, and all are below 50% 30-day implied here. KBH provides the best bang for your buck with the implied metrics I'm generally looking for (>50%), followed by DAL. Both, however, are at the low end of their 52-week range, in part due to the massive vol spike we experienced in March, which will make that metric somewhat misleading here.
KBH (18/56/14.5%),* Tuesday after market close.
DAL (7/53/12.9%), Wednesday before market open.
C (17/44/9.8%), Friday before market open.
JPM (14/32/7.8%), Friday before market open.
WFC (22/44/10.6%), Friday before market open.
EXCHANGE-TRADED FUNDS RANKED BY PERCENTAGE THE FEBRUARY 19TH AT-THE-MONEY SHORT STRADDLE IS PAYING AS A FUNCTION OF STOCK PRICE:
ICLN (14/79/20.0%)
SLV (31/48/11.3%)
EWZ (16/44/10.6%)
XLE (22/41/10.2%)
KRE (17/42/9.9%)
BROAD MARKET:
Pictured here is an IWM short put out in March at the strike paying at least 1% of the strike in credit. An IRA trade, I would look to roll up intraexpiry to lock in realized gain with >45 days 'til expiry, take profit on approaching worthless (<.20), and sell call against if assigned. Currently 67 days 'til expiry, it is understandably a bit long in duration, but I already have some on in the February monthly.
IWM (26/34/7.6%)
QQQ (21/31/6.9%)
DIA (14/24/5.2%)
SPY (11/24/5.0%)
EFA (14/21/4.7%)
* -- The first metric is the implied volatility rank or percentile (i.e., where implied is relative to where it's been over the past 52 weeks); the second, the 30-day implied volatility; and the third, what the at-the-money short straddle is paying as a function of the stock price.
Swing Trade: Barrick Gold Corp.(GOLD) breakout setup 📈Hi fellows, just one of my today swingtrades:
Nice setup for breakout .
------------------------Trade setup ---------------------------
Entry: 24,80
Stop Loss: 23,83
Profit target: 27.73
Time stop: 5 days
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Silver - The Deal of a Century Silver can still go to $20-23 range but if that happens I am buying it with all of the AMMO that I have, even my wive's kitchen sink
Silver is EXTREMELY undervalued compared to any other asset out there. The biggest reason - JP Morgan is keeping it that way through a derivatives markets but I am sure those crooks are squeezing and accumulating. JPM stock will go up but Silver (when time comes) will absolutely leave Gold in the dust.
This could be the opportunity for everyone that missed Bitcoin rally. Pay VERY CLOSE ATTENTION to Silver. Do NOT miss it. Every dip should be bought like your life depends on it.
PS not a financial advice.