theshortsideoflong.blogspot.com.au
Since I do not have much time to update the blog these days on regular basis, whenever something happens, I'll just do a quick point form post from now on. I'll add a proper update with sizing and specific entries / instruments sometime late. So here it goes, for those who are interested:
- Our fund has added some more positions into the Precious Metals sector, targeting Silver again. We bought a decently large position through both futures as well as couple of ETFs at various points around $32 to $32.50 area (at point 2). You might also remember our original purchase back on 29th of December around $26.75 (at point 1).
- It seems that the March correction is ending, while the prices themselves remain in an uptrend and Silver has now potentially established a first HIGHER LOW. This is very critical (if it ends up being right), as it creates a first sign of a trend reversal from bearish to bullish since May 2011 at around $50 per ounce.
- If Silver keeps rallying higher, we will be adding even more positions as we approach a critical decision point, which seems to have abundance of resistance levels spanning from a $34 polarity line (support turned into resistance), as well as the 50 day plus 200 day MAs and finally the major downtrend line which started since May 2011.
- The way we see things playing out, is that Silver has potential to establish a new bull trend very shortly, but first it needs to break major resistance lines. A break of all those major resistance lines on the upside, will confirm that the secular bull market has resumed after a cyclical bear market over the last 12 months.
- Finally, I also added a small position in Junior Gold Miners in my personal account around $24.50 area. As already discussed in the Gold Ming post a week or so ago, I believe it is a very encouraging sign that Juniors (GDXJ) failed to make a new low in March, while Seniors (GDX) did so below $50. This divergence should prove to be bullish in coming weeks and months.
