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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
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Trading Talk
My book:
Vedic Codes of the Stock Market Volume 3 – ETFS
  • "SILVER: The Investment Of The Decade! 0 comments
    Apr 4, 2012 11:14 PM | about stocks: PSLV

    By Patrick MontesDeOca

    The Sprott Asset Management is one of the world's leading investors in silver and precious metals and Eric Sprott, its Founder, believes that silver will be the investment of the decade. To read a recent interview with Eric Sprott where he discusses the fundamentals and outlook for the silver market, please click here.

    Founded by Eric Sprott, Sprott Asset Management is a Toronto-based asset manager with a team of leading investment minds that are independent thinkers and have the courage to act on their convictions. They are united by one common goal: to deliver outstanding long-term performance to their investors. They offer a wide variety of investment solutions to Canadian and international investors. The product offerings includes mutual funds, alternative strategies, gold and silver bullion funds, tax-efficient corporate class and flow-through funds and closed-end funds.

    Eric Sprott has accumulated 35 years of experience in the investment industry. After earning his designation as a chartered accountant, Eric entered the investment industry as a research analyst at Merrill Lynch. In 1981, he founded Sprott Securities (now called Cormark Securities Inc.), which today is one of Canada's largest independently owned securities firms. After establishing Sprott Asset Management Inc. In December 2001 as a separate entity, Eric divested his entire ownership of Sprott Securities to its employees.

    Eric's predictions on the state of the North American financial markets have been captured throughout the last several years in an investment strategy article that he authors titled "Markets At A Glance".

    Sprott Physical Silver Trust Announces Completion of its Follow-on Offering of Trust Units

    The Trust will use the net proceeds of the Offering to acquire physical silver bullion in accordance with the Trust's objective and subject to the Trust's investment and operating restrictions described in the prospectus related to the Offering, and as of January 23, 2012 has contracted to purchase a total of approximately 10.57 million troy ounces of physical silver bullion.

    EWC PROPRIETARY CYCLICAL WAVE COUNT ANALYSIS FOR PSLV

    Chart provided by: www.ewc-trading.com

    Let's take a look at some of the highlights and commentaries made in our Seeking Alpha instablog report published Jan 2, 2012.

    This is the 2012 Special ETF Edition for the PSLV Vedic Code Yearly Cycles Report.

    The highs for this period: According to the Vedic Code Price Energy Momentum Indicator, the upper end of the vertical axis indicator above 8 begins to get overbought anything above 9 is extremely overbought. These are the following months for this period: March, July, September, and December, 2012. The recommended strategy: cover long and reverse to short. These monthly dates contain a high probability factor for the monthly cyclical patterns to change and reverse as the cycle energy period is completed and the indicator adjust to the access level one in preparation for the next cycle wave pattern to start again continuously in a forward motion. Use these dates as a reversal indicator. For stocks and ETF's use the New York Stock Exchange PM Closing Prices.

    The Lows for this period: According to the Vedic Code price energy momentum indicator, the low end of the indicator below 2 begins to get oversold. Anything below 1 is extremely oversold. These are the following months for this period. January, April, and October, 2012. The recommended strategy: cover shorts and reverse to long. These monthly dates contain a high probability factor for the monthly cyclical patterns to change and reverse as the cycle energy period is completed and the indicator adjusts back to the axis level one in preparation for the next cycle wave pattern to start again continuously in a forward motion. Use these dates as a reversal indicator. For stocks and ETF's use the New York Stock Exchange PM Closing Prices.

    Acceleration Patterns : According to the Vedic Code Price Energy Momentum Indicator, the acceleration patterns are directional momentum indicators that identify increasing trend volatility and are used to add to your position according to the 30 day trend patterns. These are the following months for this period: February, May, June, August, and November 2012. The recommended strategy: Add to positions on corrections.

    REAL TIME PSLV WEEKLY CHART

    In looking forward to see what the price action has in store for us, lets take a look at the real time weekly line chart above and identify some price objectives and make some projections into the summer of 2012.

    If we take the December 14, 2012 low of 12.36 as the low of the 2012 cyclical wave pattern, then we can identify the high of 16.13 made on February 29, 2012, as the short term top wave count anticipated in our Jan 2, 2012 report as the first leg of a five wave pattern unfolding in 2012 projecting prices into the 19.15 price trading range by July 15, 2012.

    In using the low made on March 22, 2012 of 13.11, it appears the correction from the highs made in February 29, of 16.13 was the second and corrective wave completion pattern.

    Let me point out that from the low of 12.36 made on Dec 2012 to the high made on February 29, 2012 of 16.13, it is a very impressive gain of approximately 3.77 point gain or 30.5%!

    If the silver market is the investment of the decade, current prices around the 14 dollar price range could be offering a historical buying opportunity!

    There is no question Mr. Eric Sprott is leading the silver parade in 2012 with the PSLV Silver Trust Fund.

    Disclosure: I am long PSLV.

    Additional disclosure: PRECIOUS METALS PRODUCTS TRADING INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

    Stocks: PSLV
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