Has SLV Bottomed?

SLV held steady today, while $USD went up and $SPX went down.
All Bullish Signs for the Precious Metals.
Next important Resistance for SLV to break thru is at 23.70.
Then there's a gap up to 25+.
:cool:
 

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Quote from trade4succes:

Presuming from various sources there are quite a few investors having averaged down silver and gold's fall this year. Usually a pretty bad idea (can't think of a reason why it would). Wonder when (and what will be the result) this collective of holders will decide to sell though. I hope they all get out well.
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Averaging down could work in a bull market, especially if a fund manager gets paid on the gross assets,LOL. Not a prediction.

I prefer to study trends myself;
occasionally trade/invest trends, both silver /SLV+ gold/GLD are up, long term,,
up 20 days, UP 50 days. Not saying SLV $17.76 /17.77 is the bottom;
simply saying most of the trends are UP:D

Wisdom is profitable to direct.:cool:
 
04/28/11 - 06/27/13: SLV 26 month Downtrend from 48.35 to 17.75

06/27/13 - 08/09/13: 17.75 to 19.89 Trading Range

08/12/13: Gap-up Breakout into 19.90 - 23.70 Overhead Resistance Zone

08/23/13: SLV hits 2 month New Uptrend High of 23.25
 

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3x Silver ETFs (USLV) could be better choice to keep the money in in comparison to the GOOG that is traded at the top (no offence to Google fans). By my personal analysis Silver has better odds of bringing better profit in the future.

Silver ETFs
 
looks like a word an experienced one who already lost a lot on 3x ETFs.

Ok, let's see, as I understand you are suggesting Silver is going to continue crash util Silver becomes cheaper than a dust?

Another guess: Are you in short on Silver?
 
no i've never lost money on a 3x etf because i am smart enough at math to know why not to hold them for extended periods. they are fine for intra-day but never for holding.... take this example and i'll use round numbers for simplicity.

day 0:
ETF = 1.00
3x ETF = 1.00

day 1: +10%
ETF = 1.10
3x ETF = 1.30

day 2: -10% back to scratch theoretically
ETF = 1.00
3x ETF = .97

so you lose money over any extended period of break even chop due to the way the 3x etf rebalances the leverage. the ONLY way this is a good bet is if it goes straight up every single day. if you want the leverage just get into the futures market or buy with margin, but using the levered etf is just a chop to die to.

i'm long silver and will be for the rest of my life, but i'll never use a levered etf i'll just buy on margin PSLV or go into the futures market.
 
day 2: $1.10 minus 10% will be $0.99

I guess it is just a typo.

Now according to your "math"

day 3: 10%up
ETF = 0.99*1.1 = 1.89
3x ETF = .97*1.1 = 1.67

Do I follow correctly your math? Does Should 3x ETF be 20% lower???

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Now, lets took on the real picture (see attached chart).

We have SLV (Silver ETF - orange line) and we have USLV (3x Silver ETF - black bars) wich I have aligned as of June 2013.

After that time the silver went down. 3x Silver ETF dropped down stronger. By the middle of July the SLV was about 10% down from its May's readings

However, in the middle of August the Silver ETF was back at the same level seen in the begging of June. According to your math the 3x Silver ETF should be much lover (about 20% lower). However, this is not the case. 3x Silver ETF is back at the ame level it was in May.

I think your math could work when the case is not about the the ETFs that track the same commodity (index). When they track the same instrument they will be aligned
 
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