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Michael Noonan Edge Trader Plus Michael Noonan is the driving force behind Edge Trader Plus. He has been in the futures business for 30 years, functioning primarily in an individual capacity. He was the research analyst for the largest investment banker in the South, at one time, and he... More
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  • Silver - A Follow Up. Staying A Step Behind 0 comments
    May 1, 2011 10:25 PM

    Sunday Evening  1 May 2011

     About a half hour after our silver article was posted, the market
    opened with a rather stunning decline of over $5.  This bolsters
    what the article observed.  [See Silver - Be Long, But Not A New
    Buyer Up Here
    , click on http://bit.ly/lAV6EG, four hours ago].  We
    pointed out the location of the closes in conjunction with the
    associated heavy volume, an indication of sellers present. 

     What these observations say is the capturing the essence of
    developing market activity is the BEST source for market news. 
    It encapsulates ALL of the collective minds trading in the silver
    market, registering the  results of all trade decisions made.  It
    then becomes a function of reading the factual observations,
    as was done.   Not all "reads" are as clear, nor do they
    necessarily translate into immediate results.  However, when
    followed, they usually lead to the logical conclusion, unless
    changed by newly developed market activity.

     What to make of this dramatic price change?  It will like lead to
    a consolidation trading range, and that will be healthy for the
    continuation of this clearly established strong up trend.  This is
    an example of why one does not "chase" any market, up or down. 
    The "read," as our observation in the last post, above, suggested,
    there would likely be a correction,  As is also often said, the outcome
    of how any market will develop is always an unknown.

     That the outcome of any trade cannot not be known was
    underscored twice in a recent previous article, Silver And The S & P
    - A Tale Of Two Markets
    , click on http://bit.ly/lEsnLH, 5th paragraph,
    and again, the fourth paragraph after the second chart.  It is always
    important to know certain axioms and give them heed.  One more
    comment we also like to make, as a guide to stay out of trouble is
    to stay one step behind the market.  Let the market lead; do not try
    and get ahead of it or try and outguess it.  That is why brokerage
    companies have margin departments, for those who cannot resist
    the siren call of "prediction" instead of factual observation.

     Let the proverbial "dust settle," as it always does, and do not be
    heroic by jumping into the fray.  There will be clearer opportunities
    that will develop.  It is the nature of market behavior.

     

     

    SIN D-2  1 May 11

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