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Gold/Mining/Energy : Silver prices -- Ignore unavailable to you. Want to Upgrade?

To: jennifersilversun who wrote (7367)	5/1/2006 1:55:12 AM
From: Canuck Dave	Respond to of 8010

Confucius say; "Pay in full and ride out dips. Not a good time to make margin." Wise guy, that Confucius. Who knows what "really" happened last Thursday. I've cashed a few profits, got a bunch of cash, and can afford to be patient. CD

To: jennifersilversun who wrote (7367)	5/1/2006 6:00:11 AM
From: Patrick Slevin	Respond to of 8010

The easy question is Comex. From the Comex site, nymex.com Maximum Daily Price Fluctuation Initial price limit, based upon the preceding day's settlement price, is $1.50. Two minutes after either of the two most active months trades at the limit, trades in all months of futures and options will cease for a 15-minute period. Trading will also cease if either of the two active months is bid at the upper limit or offered at the lower limit for two minutes without trading. Trading will not cease if the limit is reached during the final 20 minutes of a day's trading. If the limit is reached during the final half hour of trading, trading will resume no later than 10 minutes before the normal closing time. When trading resumes after a cessation of trading, the price limits will be expanded by increments of 100%. The more argumentative answer is "what exactly happened". Ask 5 different people & get 7 different answers. My answers are chart-based, so someone who does not care for technical analysis would disagree. I had been selling part of my position going into that day for 2 reasons. First, if you have either a daily or weekly chart of July Silver (that's what I'm trading, certainly May was the same) it was impossible to even put a trendline on the final few days or the past several weeks. The price was, for all practical purposes, vertical. Attempting to place a French Curve on it, it appeared the move had to become impossible after the high 14 dollar range. Second, historical Resistance is around the same area. If you look at a Continuous Chart, like this one, jsmineset.com (The Silver Chart is the 4th one down). Silver fell from just under 15 in the late 1980's. (Continuous Charts do not have the "real" price, but are adjusted constantly to accommodate rolling). As you pointed out, once that structure started to collapse, the stops would have fed on themselves. As Silver (& Gold) get pricier, volatile moves will be the norm in my opinion. The Exchanges are making the margins much higher...I think Silver alone was raised three times in the past two weeks.....because of volatility. My Stop was 11.55, my remaining position was almost taken out as well. That's my take on it, anyway.