After holding SLW for a few weeks, I'm finally out for now. I have traded in and out of SLW for the past few months. So there isn't an exact price and date of entry for these 246 shares. The effective purchase price was about \$3.50.
As I noted more than a few times in the past, I love SLW. I intended to hold it as my core position for the long term. However, as I have learned the hard way, buy-and-hold isn't an effective strategy in the current market condition. So I've decided to sell my SLW on some significant weakness.
From Figure 1, SLW has tested the long term resistance (from 2007) of \$7 twice recently. We still haven't broken it despite S&P 500 breaking its own resistance. Moreover, we can see from Figure 2 that this second top is a lot weaker across the indicators. So this is effectively a double top formation, for now.
I still have my reserve on this because it is a holiday week, so low volume is expected. Thus, I would watch for SLW's action next week and see if it can break \$7 and then get back in at a higher price. I'd rather miss out on a \$1 or even \$2 than watch it make a double top. I have nearly doubled on this trade so I'm just trying not to be greedy.
However, there is a possibility that we might gap up from here and rocket higher next week. If that's the case, I will probably not chase it and look for another trade (TCK looks good).
[caption id="attachment_999" align="aligncenter" width="500" caption="Silver Wheaton"][/caption]
[caption id="attachment_1000" align="aligncenter" width="500" caption="Silver Wheaton"][/caption]