SLW up about 20% in 2 days

SLW

GDX (Gold miners):GLD (Gold) ratio

SLW up about 20% in 2 days (I hold ZERO shares), which is associated with the vertical rise of Gold and Silver. However, GDX:GLD ratio just broke to a new bottom. The BUY signal for SLW is confirmed and I should eye for an entry. By this point, I won’t be buying at the bottom, but it’s still good to buy on the way up. Unfortunately, I was on the plane to Hong Kong Tuesday when SLW backed down to $7.65. I thought about putting in a limit purchase order on Monday but didn’t do it because I’m not confident with guessing prices. Yet, I should look into using limit orders since I can’t be expected to sit around the desk all the time for real-time trading.

I believe a retracement would occur for SLW when the general market capitulate and go into a major bottoming panic selling mode. Given that the DOW dived 500+ and 400+ points in the past two days, this bottoming process may already be happening or very close at the very least.

Related posts:

1. -$1000 in 2 days!
2. Gold/Silver Miners versus Gold/Silver Price
3. SLW: Long Entry Stop $8.15 / Exit Stop $8.05