Updated SLW trading thoughts...
Today's volume gave any potential institutional tax
loss sellers a "gift horse" opportunity that NONE of
them could, or would pass up - to dump into.
If you were a mutual or hedge fund manager, and you were
even remotely considering taking the tax loss on SLW ...
you did it yesterday, and/or today.
So what does that mean to you if you're long SLW?
It means that this volume today more than likely, absorbed
the vast majority of potential tax loss selling that
existed in SLW.
And that's a reason to NOT be in too much of a hurry
to be taking profits here, because the overhead resistance
of tax loss selling may already have been taken out.
Here are the trading channels SLW has been in of late:
Take a look at that "long tail" spike down on the large
red candle on October 10th.
Technically, if I am correct about the institutional tax
loss selling getting taken out over the last two days,
then we are now set up for the reverse, a spike up.
So hold on, because the fuse may just be getting lit on
this one and we could easily run to that $4.60 high of
November, or even the $5.99 level from mid-October when
silver was only $9.50.
Nothing wrong with taking "some" profits off during the
run up, or raising stops, but give this dog some leash,
because she's running s-t-r-o-n-g.
And look out, if gold and silver can get some wind behind
their backs...
Mo later,
SOTB |
