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Przemyslaw Radomski, CFA
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Przemyslaw Radomski, CFA (PR) is a precious metals investor and analyst who takes advantage of the emotionality on the markets, and invites you to do the same. His company, Sunshine Profits, publishes analytical software that anyone can use in order to get an accurate and unbiased view on the... More
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  • For the Very Short Term, Silver May Be the Way to Go 0 comments
    Oct 4, 2010 12:01 PM | about stocks: GLD, SLV, GDX, UUP, UDN, SPY, DIA, DGP, DZZ, DGZ, UBG, UBM, USV, PTM, PTD, JJM, JJN, IAU, GDXJ

    For the Very Short Term, Silver May Be the Way to Go

     


     

    This essay is based on the Premium Update posted on October 1st, 2010

     

    We continuously ask friends to send links to stories on gold they encounter in their daily excursions on the Internet. These are people who do not follow the financial markets. We want to get an indication of how many gold stories ordinary folks are bumping into. We were away for a week and upon returning we had almost 200 e-mails in the inbox among them many links to gold stories sent by our diligent friends. Even before zealously tackling the charts and tools, this made us think that the recent run up is not the start of a big runaway rally that would take us to $1,500. A correction is needed first.  If friends are seeing so many gold stories, so is everyone else. It is the golden bull’s primary and malicious objective to shake off as many investors as possible trampling them in the process. (This is why we urge our Subscribers to hold on to long-term positions and enjoy the ride - only a powerful combination of multiple strong bearish signals would make us consider selling our long-term positions.)

     

    We look at the long-term chart for silver chart (charts courtesy by http://stockcharts.com.) to answer the question “How high will the rally in silver go before consolidating?"  We compare previous breakouts in order to measure and estimate probable target levels for the near-term.

     


     

     

     

    Bull markets often can be studied using self-similar pattern ideology. In other words, patterns seen previously on a smaller scale can apply to the present on a larger scale. This is also why we use a logarithmic scale to present prices, since a previous $2 rally when silver was at $4, (a 50% move) may today be only a 10% move when silver is above $20.  

     

    An important observation is that local tops have been followed by sharp declines and then huge rallies. We have seen this pattern repeatedly. Short-term traders may wish to take advantage of these trends. In these volatile times we highly recommend using trailing stops. We will not try to time this move with our own capital, as we are not very-short-term oriented. Still, the full version of this essay includes timing details on the short-term chart.

     

    To make sure that you are notified once the new features are implemented, and get immediate access to my free thoughts on the market, including information not available publicly, I urge you to sign up for my free e-mail list. Sign up today and you'll also get free, 7-day access to the Premium Sections on my website, including valuable tools and charts dedicated to serious PM Investors and Speculators. It's free and you may unsubscribe at any time.

     

    Thank you for reading. Have a great and profitable week!

     

    P. Radomski

    Editor

    www.SunshineProfits.com

     

     

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    Interested in increasing your profits in the PM sector? Want to know which stocks to buy? Would you like to improve your risk/reward ratio?

     

    Sunshine Profits provides professional support for precious metals Investors and Traders.

     

    Apart from weekly Premium Updates and quick Market Alerts, members of the Sunshine Profits’ Premium Service gain access to Charts, Tools and Key Principles sections. Click the following link to find out how many benefits this means to you. Naturally, you may browse the sample version and easily sing-up for a free weekly trial to see if the Premium Service meets your expectations.

     

    All essays, research and information found above represent analyses and opinions of Mr. Radomski and Sunshine Profits' associates only. As such, it may prove wrong and be a subject to change without notice. Opinions and analyses were based on data available to authors of respective essays at the time of writing. Although the information provided above is based on careful research and sources that are believed to be accurate, Mr. Radomski and his associates do not guarantee the accuracy or thoroughness of the data or information reported. The opinions published above belong to Mr. Radomski or respective associates and are neither an offer nor a recommendation to purchase or sell securities. Mr. Radomski is not a Registered Securities Advisor. Mr. Radomski does not recommend services, products, business or investment in any company mentioned in any of his essays or reports. Materials published above have been prepared for your private use and their sole purpose is to educate readers about various investments.

     

    By reading Mr. Radomski's essays or reports you fully agree that he will not be held responsible or liable for any decisions you make regarding any information provided in these essays or reports. Investing, trading and speculation in any financial markets may involve high risk of loss. We strongly advise that you consult a certified investment advisor and we encourage you to do your own research before making any investment decision. Mr. Radomski, Sunshine Profits' employees and affiliates as well as members of their families may have a short or long position in any securities, including those mentioned in any of the reports or essays, and may make additional purchases and/or sales of those securities without notice.

     

     

     

     

     



    Disclosure: no positions
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