SLW up about 20% in 2 days

[caption id="attachment_216" align="aligncenter" width="500" caption="SLW"][SLW][][/caption]

[caption id="attachment_221" align="aligncenter" width="500" caption="GDX (Gold miners):GLD (Gold) ratio"][GLD (Gold)
ratio][][/caption]

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.

[SLW]: http://traderpau.files.wordpress.com/2008/09/2008-09-17-slw.png [GLD (Gold) ratio]: http://traderpau.files.wordpress.com/2008/09/gdx-gld.png