Today, April 21st 2011, we saw Gold & Silver hit 31 years highs with amazing demand for the metals. Just since January, Silver had pulled back from 31 to 27 per oz, where it took on another massive move higher, to now almost 47 in less than 4 months.
If you compare the high in Silver to the Highs seen in the early 80’s where the Hunt Brothers tried to corner the Silver market, the metal would have to move up to, I believe, $140 an oz just to be at par with where it was back then, because of inflation.
If you ask me, Silver and Gold are just getting started, even though they have been in a long term bull move for more than 10 years. Both of those metals are a very good insurance policy against a paper dollar that has seen its purchasing power dwindle year after year, decade after decade.
Below is today’s turning points in the small T-2 chart for Sniper Day Trading. Most of the days turning points are seen, but there were some very good trades before that not shown on the screen shot.
The Silver market is huge, with contract size being at 5,000 oz, a 1 dollar more in the metal represents $5,000 dollars. With today’s move, over 2 dollars from the previous open, you have a basic windfall for many.
Looking at it another way, scalp trading the metal for .10 to .20 cent moves is $500 – $1,000 dollars per trade. It will work the same against you if you are wrong, so be sure you know what is going on and are well capitalized and trading a precision trading method.
My trading method works the same with Silver as it does with the S&P. Today’s moves are only an example of what has been happening for months. The moves are very much in line with the trading method and very predictable when seen through the eyes of a Sniper.
Trading this market, you need to be a Sniper, picking the exact area of interest as price gets ready to move out. I have those area’s circles and identified above. Click on the chart and you will see the turning points here just the same way you see them in the S&P.
The Gold and Oil market are two other markets with great interest and plenty of emotion backing them.
The S&P did trade today, but I took the day off. There was no movement, and that I am sure could have frustrated many a trader. It does not pay to try and trade a market that has virtually no trading range at all.
The market will still be here next week and we will again see life coming back into the index’s. Until then, lay low and safe.
Tomorrow is Good Friday and I believe shortened trading session? Be sure you know. I would already know that, but I don’t plan to trade, so don’t need to know . The point, check if you are going to trade. It is no fun seeing the market close on you with contracts still on board, now having to hold over the weekend. I did that once, and only once.
Good Trading !
Monday and Tuesday;
I have had limited time to trade these last couple of weeks as we moved to a new home. It is always a lot more work than we think it is and it has limited my ability to stay focused. I took one trade each on Monday and Tuesday with a -3 tick loss for each. I did have good profit in the trade and could have cleared 1.50 points on both trades, but let it go for a full two points.
Please log into the site.