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Patrick MontesDeOca
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Published Technical Analyst, Author, Commodity Trader, Systems Developer, Algorithmic Intelligence, Computer Modeling of Processes. I custom build Proprietary Artificial Intelligence for each individual client's portfolio needs. After more 30 years in the business, Patrick MontesDeOca has... More
My company:
Equity Management Academy
My blog:
Trading Talk
My book:
Vedic Codes of the Stock Market Volume 3 – ETFS
  • Time To Short ZSL 0 comments
    Mar 10, 2013 8:00 PM | about stocks: ZSL

    ZSL ProShares Ultra Short Silver ETF

    The general consensus among technical analysts is that the silver market is making some kind of a bottom at the current price range of 28 to 28.50, and some are calling for lower levels into the 25 to 26 area.

    All the work done by the Equity Management Academy's research indicates the contrary is about to happen. The cycle work provided by EMA indicates that if this expected move is going to happen, it is going to happen NOW. The highs of this leg to is expected to come in towards the latter part of April early May of this year. I have highlighted the reasons for this potential move on a recent report published in Seeking Alpha.

    The general sentiment by Eric Sprott and Rick Rule (Sprott Asset Management) and David Morgan, supports fundamentally and technically this market currently can substantiate and validate a very aggressive move to the upside near-term.

    If all of the above consensus indicate an up move in silver prices short-term is coming, it does not bode well for derivatives such as the ProShares UltraShort Silver ETF.

    It appears the highs were made in the 55 to 56 target zones a few weeks ago. A close below 52 next week would put into perspective the lower targets of 47 to 45. A close below the 45 level can bring this market down all the way under 40.

    Let's take a look at the technical picture for next week and see what live trading opportunities we can identify.

    The ProShares ETF contract closed at 53.05. The market closing below the 9 MA (53.61) is confirmation that the trend momentum is bearish. A close above the 9 MA would negate the short-term trend to neutral. With the market closing below the VC Weekly Price Momentum Indicator of 53.34, it confirms that the price momentum is bearish. Look to take some profits, if long, as we reach the 54.78 and 56.15 levels during the week. Buy corrections at the 51.61 to 50.17 levels to cover shorts and go long on a weekly reversal stop. If long, use the 50.17 level as a SCO/GTC (Stop Close Only).

    TRADING DERIVATIVES, FINANCIAL INSTRUMENTS AND PRECIOUS METALS INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

    Additional disclosure: The information in the Market Commentaries was obtained from sources believed to be reliable, but we do not guarantee its accuracy. Neither the information nor any opinion expressed therein constitutes a solicitation of the purchase or sale of any futures or options contracts.

    Themes: etf-long-short-ideas Stocks: ZSL
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