I just looked at GLD and SLV, this isn't long term analysis of GLD or Silver like last night's post. I saw probabilities in GLD, but not high probabilities and a really nice set up. SLV had better probabilities and a slightly better set up.
I do not think I would use options for this trade (pullback move-perhaops a gap fill) and the AGQ long leveraged position was chosen exactly for this reason, it has some leverage, but can withstand some pullbacks without serious draw down, allowing us to capture most of the trend. Options do have their place, but that's in Very high probability trades with set ups with the trade coming to us.
Although I think a SLV pullback is high probability, I don't think it's worth messing around with the AGQ long that is already about 8% in the green.
SLV Charts
2 min intraday is negative here, there is a bit of a gap below and the market has been relentless in filling gaps since thee rise of HFTs.
5 min SLV also negative and looks like it will fill the gap, I think in that area either AGQ long will be a nice new long position and possible some calls.
SLV 15 min is negative, but not extremely bad/leading.
The important chart is the trend for now-note the distribution and the head fake move in yellow before the reversal, similar to what is going on today in the market and then the leading positive divergence, I suspect this may be part of a counter trend BEAR rally, but these are the strongest. I see no reason to close AGQ at this time.
No comments:
Post a Comment