Here is the chart of the Silver trade I entered the other day just exited for a large profit. It certainly appears at the moment that my call over a month ago for a top in the metals by Mid oct might be one of the best calls I have ever made. We will of course have to see now what happens, we are drifting into an area that if the trend is going to stay intact on a weekly basis, needs to hold.
I also have displayed in a sloppy fashion another short trade a made last week in this market that was a loss of about $1900 per contract. It is always easy to just post everything you do right, and too many phonies out there do that. To be credible, I felt I needed to give the full picture of what I actually have done here. I still came out $4,000 per contract ahead on the 2 trades and that is the goal, to make a profit, not be right in a blog call.
The stage is set for a massive washout in this market if we do not hold right here based on the above comments about weekly support. Based on the fundamentals I have clearly layed out here, this could be the beginning of a substantial downward move in the metals. Alot will depend on the stock market and the dollar here. Many currencies appear to have topped here and the dollar is close to giving a buy signal, so this is all falling into place here. I do not expect the bulls to give this up easily, but with this being month end, if the funds cannot rally stocks here in the last few days with the standard window dressing skit, this does not bode well for the next couple of weeks in any of these correlated markets.
We are right at the 50 day moving average in stocks which from my testing does not mean anything, but it is a widely watched support area. If we are going to hold, we need to do it right here or fund selling will occur.