PSLV

What a voltile day, which is pretty much going nowhere in terms of breaking significant levels, just a lot of chop and an ugly intraday trading environment.

I was just answering an email from one of our more active silver traders. Here was the gist...

 It is a little difficult to see with the chop today, but there's a lateral trend in PSLV, a wide one at that, but it's there.

 What I pointed out was the positive divergences that occur at the bottom of the range. Silver fundamentally is speculative because of the unknown factor of whether there will be another margin rate hike. However, the positive divergences keep showing up near the bottom of the range in SLV.  This is where I would look to put  a position on or accumulate a position because if theres a break below, your stop is rather close and you can mitigate the risk.

While the trade today in silver has been all over the place from a gap down to unchanged to a nearly 4% move down, looking at the daily chart nothing of significance has really happened today. There's no new intraday low, it doesn't appear that there will be a new closing low, so nothing technically significant has happened.

On the hourly chart, there's a pretty nice looking positive divergence in the trading range, I would think it is taking shape from the positive divergences near the range lows. So again, while fundamentals remain speculative in silver, buying near the bottom of the range seems to be a pretty decent risk:reward trade.

I prefer PSLV over SLV because of the controversy surrounding SLV. It would be a shame to see a move in silver negated by business practices within the ETF itself. This however creates a problem for those wanting to trade options as PSLV is not optionable.

SIVR is optionable, but a little low on the volume side.
ZSL is a Proshares UltraShort which is optionalbe, the volume is good there
AGQ is a Proshares Ultra (long) which is optionable with decent volume
DBS PowerShares  is also optionable with ok volume

By the way, they all look similar in terms of the 3C 60 min chart, with the Inverse ETFs showing the inverse 3C chart.