Per the title of my post, I have decided to add the Silver ETF (NYSEARCA:SLV) to my High-Probability, Mean-Reversion Strategy. The ETF has wonderful volume/liquidity which makes the bid/ask spread extremely tight. It is certainly an appropriate addition to the strategy. Thanks Betty!
With that being said, Silver has pushed into an extreme “very overbought” state. Couple that with an RSI (2) of 99.9, and I think a short-term lies ahead. If indeed SLV opens higher Monday, I will most likely place a trade in the strategy.
Short-Term High-Probability, Mean-Reversion Indicator – as of close 4/08/11