Friday, May 24, 2013

Going with AGQ Long Equity for a Silver Play

I'm not convinced on the short term SLV charts to take on the leverage of an options play, but this 15 min SLV chart has me pretty confident of SLV making a move higher, AGQ has 2x leverage, but any draw-down waiting for the move to unfold is not going to be significant and I can ride it out in AGQ whereas an options position would be a nightmare.

The chart...
I'll probably take about 2/3rds a normal size position, leaving some room to add and some room for drawdown if it comes. That's a 15 min chart and the kind of divergence I don't ignore-ever!

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