Silver has experienced a huge surge to the upside over the last two days. We have pushed into our fan lines (see chart in the video) which would put us in a position where we could look to be a seller, where we could look to go short the silver.
* Please comment on the video at the bottom of the page *
The overall decline, anticipated decline, that was very modest, as you can see. We established our top on February 23rd which came in very close to replicating what occurred in 1980 during that bear market rally.
The market has sold off sharply within two days. It has seen significant retracement to the upside so I do expect to see the silver market decline. The probabilities favor that; however, the options are extremely expensive and the level of ascent to decline that we would expect, I should say the decline, the velocity of the decline should be very modest.
It’s a situation where we may have an accurate forecast but there really isn’t the opportunity to make serious money on it.
I am going to be updating you with regard to this market. Probably the most prudent approach is to actually sell options. Sell call options for example, now that we are into this fan line. That is probably the most prudent thing to do since the options are very expensive, very pricey. That may be the most prudent way to play this market.
Thu, Mar 19, 2009
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