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How to Trade Silver During Violent Times

By admin on Friday, 6th November 2009

El Salvador ETF Trading – panic, screaming and the media hype!

 

It is too easy to lose and their emotional stress position.

 

Let's face it, it is difficult to come to the realization of the house, your head is screaming let me out of here voice!

 

I do not believe that emotional reflection is the only amateur to save. Professional investment managers, of course, not immune to the panic, especially because they have less time to judge and analysis, benchmarking and peer intense.

 

Having said that, we are working with two technology allows us to stand firm on our negotiations:

 

1 – Do not bet the farm.

2 – remains committed to outline at any time.

 

As regards 1: The reversal of the winners left in the game longer. No matter what type of dunk like you, not to gamble the farm, strange things happen under the sun! I most want to do is a loss, you have to take the game permanently. The size of your location.

With regard to Article 2: The best way (we) to delete images sentiment is to keep its eagle eye on the list. Here, we think that the best start to our long-term price behavior has been a sense of the monthly chart.

 

With our current favorites – silver or the gold and silver ETF in El Salvador:

Figure 1 – El Salvador ETF funds and even the long-term upward trend in monthly

Some key points:

 

* ETF El Salvador has been in a bull market since 2001, prices have risen five-fold. * Since 2002 quarters 3 and 4, there is a strong year in El Salvador. * The current adjustment is similar, in early 2004 correction. * Throughout all gut painful corrections, prices have been rising above the blue trend line. * The price is now rising above the trend line on the formation of strong support, horizontal support (second blue line) and 50-month moving average (red circle).

 

Introduction: Although it is difficult to say whether support will hold (the basis for our discussion below), I think that at the current level provides a good starting point, once we have a low risk business model is set.

 

Let us take a closer look:

 

Figure 2 – El Salvador, the weekly chart ETF

 

 

Takeaway from the above chart:

 

- In July in El Salvador double top (19 U.S. dollars. On the 17th) that it is difficult to determine because it is located at 20 yuan, short-term strong. 73 years in February to reach. However, in the extreme differences in the relative strength index (top) and MACD indicators (below) is an early sign of El Salvador has passed.

- Once the price fell below 16 U.S. dollars (blue line, and 50 support, average weeks) of the organizational chart depicts one of about 12 U.S. dollars (less than the Blue Line's technical goals).

- Corrections followed a classic Elliot Wave ABC (marked above) where C is equal to wave A wave magnitude, and again described for 12 U.S. dollars (red circle) El Salvador goals.

- In addition to representing a technical adjustment of the target 12 U.S. dollars is strong support in the monthly chart (Figure 1) and the August 2007 bottom and 200 moving average.

- We will be wrong, if we say that $ 12 has not yet reached also.

Finally, rounding the picture to zoom in El Salvador on-line graph:

Figure 3 – El Salvador ETF trading chart, a daily

 

Articles should be noted here that the two gaps, the event (blue circle) and the relative strength index of the potential double bottom (top).

 

In the technology gap between the events behind the reason for saying that, hate a vacuum in the market, often end up supporting and fill in the blanks – at least has been our experience.

 

The index of the double bottom, there is a sign of hope that housing prices is slowing down the action.

 

A long-term fundamentals for a long time in El Salvador

 

Fundamentals are even more optimistic than before clean up (we know that any consolation). Supply remains slow and the future new mines take months to reach full capacity.

 

On the demand side, if you think you (like us) precious metals (gold, silver) is the antithesis of the paper's financial assets. And the institutions who is the bastion of high taxation of financial assets, and many more, you will agree that El Salvador's demand to remain strong.

 

According to legend, silver gold dealers, all of our speeches to tell us that physical demand for silver (of which El Salvador is the ETF funds) from the clean-up and growth of silver bullets and bars, hard to find.

Concluded that: Technically, we have to buy land in the vicinity of El Salvador. Although you can still in-depth test $ 12, we are now very close to the shopping environment in the probability of being biased in our favor. Let's take a look at El Salvador in the next few weeks, may enter these prices!

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