PDA

View Full Version : Experiment IV in Position Trading



MasterQ
2nd December 2009, 09:22
End of Year Edition
-------------------

With the final breakout of silver after its hovering in the 17's since mid- September and 18's for the last 2 weeks I thought I would do a 4th and final edition of position trading for 2009.

Seeing the breakout brings many questions and concerns. Is 20 the next target? Should I buy into this rally? Should I buy coins or bars? Should I wait for a pullback? etc. etc.

Once again I am going to try and be fair and balanced with emphasis on TA and Fundamentals.

-------------------

-------------------------------------------------
Original sample purchase 12/01/09: 18.70
Sample Purchase: $18,700/1000ozbar
-------------------------------------------------
12/02/09 Open:19.26
Market Objective:19.50
NY Close:
Profit (loss):

Comment:

--awaiting market close--




-------------------------------------------------

To get the ball rolling I will make some quick purchase comments.

1000oz bar at market open today would cost = $19,260*
Profit objective Jan/Feb of $25/oz spot short term = $5740/bar* 29.8% return

(1 unit or 100 coins) of ASE's at market open today would cost = $2173*
Profit objective Jan/Feb of $25/oz spot short term = $576*/unit 26.5% return

Which would you choose?

-Q


*Does not account for broker/transaction/delivery fees

Silver-Mound
2nd December 2009, 09:26
I would chose the later, because I do not have the cash for 1000 ozer! I work for the U.S. Military for Gods Sake!

Neal

MasterQ
2nd December 2009, 14:40
-------------------------------------------------
Original sample purchase 12/01/09: 18.70
Sample Purchase: $18,700/1000ozbar
-------------------------------------------------
12/02/09 Open:19.26
Market Objective:19.50
NY Close: 19.29
Profit (loss): 0.03 on the day
Profit (loss) from 12/01/09: 0.59

Comment:

Market is showing a lot of volatility today with wide range movement between 19.20 and 19.40.

In the last 3 months we've seen this metal tire out in the 17's and gave way to the 16's, attempt to tire out in the 18's but broke out to the 19's.

The recent breakout was more on the backs of some consolidation and this looks to be the repeat of such an event.

In this bullish market one could consider the next leg will be after some much needed sideways action from the run up. The other side of the coin is it will tire out and give way to 10-20% of its position with some looming gold bubble fears and hitting this years targets so soon.

Last give was from 18 to 16.12 or 11%.

Should the bulls and continued metal buying with the fundamentals demonstrating strong support we could see 20 by next wednesday 12/09/09.

I would also recommend putting in sell stops if you are trading the metal. At these levels and looking to our last 2 year highs, it is just wise to safeguard your profits.

-Q
-------------------------------------------------

MasterQ
3rd December 2009, 07:48
-------------------------------------------------
Original sample purchase 12/01/09: 18.70
Sample Purchase: $18,700/1000ozbar
-------------------------------------------------
12/03/09 Open:19.24
Market Objective:19.50
NY Close:
Profit (loss):
Profit (loss) from 12/01/09:

Comment:
--------------------------------------------------

Pre-market comments:

This morning silver dropped back under 19.20's and is really unstable down here. Will it break apart or continue back into the 19.20-19.40 channel it just established yesterday?