SLW and ESLR broke supports and stops

DJIA

Volatility

Dow Plunges 350 on Unemployment, Factory Reports. Lots of panic headlines today. A definite 180 degree turn from yesterday’s, and another 180 from the day before. The flip-flopping sentiments of the media are just too funny. This is definitely a time of high volatility and uncertainty. Even at today’s “plunge”, the fact is, the markets are still up from last week. We could very well be seeing the bottom being set in this bear market. I think the worst of this downturn has unfolded in the past year already.

In any case, I am definitely a bit early in my long term entries. Both SLW (-15.6%) and ESLR (-14.1%) have broke support, but still far from 52-week lows. I am reluctant to sell at this time because the market is in panic mode. Yet, both prices are below the stops I’ve set for myself.

I would go long on SLW at this price if I had the fund. The indicators are on buy alert too.

SLW

Silver

ESLR

ESLR is more risky at the moment because although the price is off a lot, it’s still dancing around the 20 dma. It could very well break the 52-week low from here.

BOUGHT +166 SLW@ 8.82 LIMIT

SLW

Just before leaving for Taiwan on the 25th, I placed a GTC limit order buy for SLW at $8.80. The order executed on September 29th, 9:32am, at the open. I can’t remember the exact reasons for the $8.80 price point. I should post an entry when I do limit orders from now on just to be clear.

Silver

However, looking at the charts of SLW and Silver (YI), things are looking bearish for SLW. I will watch this position and be ready to exit as soon as needed or on a small bounce. It’s funny that what I believe to be my most “stable” company turned out to be the one I’m worrying about in my current holdings. I guess that’s a good sign as I’m not too attached to any company or having too much faith in them. Being skeptical and remaining critical of your positions are what’s essential in trading.

Fee $5

Upside: Still haven’t touched the 50 dma. Price is in trading range near the 52-week low.

Resistance: $9.0, then 10.

Downside: Indicators seem to be turning bearish.

Support: Round number $8.0, although the current price is already skimming on it. More likely $7.50, just below the all time low of $7.62

Bottom line: My signals have turned negative on SLW. I will try to get a good exit.

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.

Gold/Silver Miners versus Gold/Silver Price

Gold Miners vs. Gold

Silver Wheaton vs. Silver

Bottom for SLW can’t be too far off now… A good sign would be a capitulation when the miners vs. metal chart break the accending support levels.

SOLD -168 SLW @9.19149

I’m all out of SLW now. Cost basis was $8.14. Chart looks toppy and the rise from the bottom range seemed too obvious. The overall market is still range bound. I’ll wait for capituation before entering again. Fee = $5.

SLW