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SLV trade ideas

SLV - Wave 4 driftSLV continues it's sideways action thus far continuing in what appears to be a standard wave 4 correction prior to rallying into wave 5. The indicators shown seem to confirm that this is at best the wave 4 correction and the established channel indicates further possible drift until the end of the year. The spike that occurred this week was quickly sold but it does seem to show the potential explosiveness that could happen overnight. Fundamentally, the fiat currency system appears to be in jeopardy as the Fed embarks on what appears to be a new round of monetary stimulus. The world is awash in debt. Any attempt to raise interest rates can only result in disaster. Social and political turmoil is sprouting up around the globe yet precious metals languish. Several countries are now establishing gold markets in currencies other than the US Dollar. Various countries and central banks are accumulating precious metals. The size of the silver and gold markets are tiny compared to other markets like currencies, bonds and stocks. A broad-based move to add precious metals to portfolios could reveal this size and boost prices back to the highs. That's pretty much a triple from today's prices. There aren't many other market classes that can provide this much bang for the buck. Seems inevitable but for now, patience is required.
AMEX:SLVLong
by Glewis54
SLV Channel Defined But . . On the short term, it appears that SLV has completed wave 4 and is now starting on Wave 5. With the Fed announcing what amounts to QE4, precious metals rallied higher however there is still overhead resistance. While lower prices to the lower channel line would be temporarily disappointing, it would be a great opportunity to "load up" on cheap calls. Following this channel or a 20 week moving average, one would expect that SLV be holding a minimum level of 18 by Jan 2020 option expiration and much higher prices throughout the next year. Be prepared to buy if another shakeout occurs. My gut tells me though that the move starting now will catapult SLV to above 20, quite possibly to 25 before retreating into a lengthily consolidation period.
AMEX:SLVLong
by Glewis54
1
SLV Corrective Action Complete?One can never really tell how elaborate corrective actions can be but it does appear that an impulsive move up may be what's coming next. The next major price target is the previous major high around 19.77. It's possible however that this target might not be hit until early next year. With that timeline in mind, I have been adding to 2021 LEAP call positions on the dips and liquidating 2020 calls on rallies. The stochastics indicator reading can be used as one of the tools to provide overbought/oversold readings to take action. When looking at SPX move since 2009, it's impossible to forecast how high SLV could go if we are in fact entering into a Bull Market. Most Elliott Wave scenarios I've seen suggest that the current moves for gold and silver are merely Wave B of an overall corrective pattern with more downside to eventually come. If we are in the initial phases of a Bull, the length and magnitude of the move could be substantial. With computer algorhythyms and easy money controlling the market action, only short-sightedness and impatience might be the limiting factor in your profits.
AMEX:SLVLong
by Glewis54
1
SLV Feeling like Getting Shaked Down?I have been taking this opportunity this morning to add to my long term position. As you can see, the monthly trend is still up with higher lows and higher highs. Today is month's end so as long as we don't go below today's lows tomorrow, the monthly trend is still intact. On the shorter term view, looks like a normal correction in progress. Hey, if you want big gains, you have to accept the big volatility. If you are trading this, you've got to love these swings. Thinking that the Jan 2020 16-18 call spread is a pretty good bet on a better than 4:1 payout. I bought some of these for 50 cents as we dipped to 16.
AMEX:SLVLong
by Glewis54
SLV Wave 4 Setting Up for move to 20Still holding an uptrending channel. Holding this level would be super positive, setting up for a wave 5 move to the top of the channel. By rule, Wave 4 cannot breach Wave 1 so while lower prices are still possible, impulse waves generally conform to the channel. As my long term outlook is for eventually testing the highs, I was buying Jan 2020 and Jan 2021 LEAP calls. Earlier write- discussed the double bottom pattern. To prove the double bottom formation, price would need to break through the last major high just under 20. My expectation was that it would pick up steam and run to fill on gap on SLV above 25.50. Not certain if gaps in SLV get filled like gaps in stocks since XAGUSD trades pretty much continuous. I was watching today to see how SLV would react to filling the gap. I was buying as that gap filled. It then rallied from their but backed down at the close of the day. So I'm thinking that gaps are valid and there may be a run to 25+ As 20 gets touched/breached, would expect some selling but also, as another poster wrote, buying above 20, a breakout level, was the strategy. As the five wave pattern completes, I'm expecting the ensuing correction to last around 3 months, possibly into next year, so I'm planning to liquidate the 2020 calls, holding on to the 2021s. Expect lots of great trading opportunities during that correction phase to build a large position in anticipation for a run to test the highs.
AMEX:SLVLong
by Glewis54
6