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  • Silver and Gold Shorts Update 0 comments
    Dec 29, 2011 4:48 AM | about stocks: GLD, SLV

    Originally posted on our site, December 14 2011 :

    Gold has now spent three days below its 3-year uptrend, and has had the first closing below its 200-day moving average since January 2009.   That's despite all the dollar doomsayers and economic tumult worldwide.

    Gold bulls need be very concerned, and hedged. 

    Gold is today at the same level it was in early May of this year.  In that time, our proprietary Gold Trend Indicator (NYSE:GTI) has signalled seven trades.  Including the results so far from the latest short suggestion of last Tuesday, just before gold started tanking again, our GTI is up almost 44% in that 8-month period alone.  

    That's wthout compounding, and those taking profits before GTI signal reversals as we've often suggested, or those using options, would've been up far more.  For example, Monday evening we suggested to subscribers that they might consider certain GLD put options.  The positions we detailed, based on the following day's opening price, were up as much as 310% in less than two days.

    We are totally confident that no other method or advisory, at any price, can beat our GTI's consistent accuracy and results. 


    Originally Posted on our site October 01 2011 :

     

    We've updated our silver chart.  Click the chart below to download a much larger, legible version of it :

    SLV weekly - September 30 2011

    For this update we call attention to the fact that silver bounced exactly from the long-term uptrend as expected, however we also expect that line to fail and silver to approach the 200-week moving average (in blue) above the area marked "Target ^^^^^^^". 

    Additionally we note the "Ultra-bad Squiggly Line Inversion" in the middle pane.  We're joking about the terminology of course, however suffice to say it portends further bad news for silver longs.  There are other important technical and logical points that strongly suggest silver will go much lower, but we'll save that commentary for subscribers.  This chart says plenty all on its own, and to us it says that silver is going lower.

    At essentially the lows for the silver crash so far, over the weekend before Monday September 26th, we advised selling half the short position and that amounted to a gain of 98%. 

    We then warned of a bounce and that any rallies would not be of much duration or magnitude.  Silver did bounce as we'd warned, and when ZSL was back below $13 we advised buying back the sold half position. 

    [As of December 28 2011, ZSL is back over $17 and climbing as silver's epic tanking continues.  Almost three months after this posting appeared on our site, including the graphic below, it is perhaps time to update the graphic and show gold at least in the "Disbelief" stage and silver in the "Inner Self-Criticism" stage.  Going forward the "flight to safety" concept, with respect to silver and gold, will be further revealed as the total fallacy it is.  True hedges remain, as always, U.S. dollars and treasuries, and we remain long the U.S. dollar since the exact lows in early May of this year when the entire world was bearish the buck.]
     

    7 Stages of PM Investing




     

    Themes: gold, silver, shorting Stocks: GLD, SLV
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