Blast Off?

I entered a silver position today and for the first time since the selling all my positions at 48. I am utilizing a long dated deep in the money Call strategy, buying Jan 2013 30 Calls. I filled at 10.05 or $1005 per contract. My thinking is that the next move in silver will likely revisit the highs and then blast off higher. I need time because gold will have to underpin silver and make up for its handicap as an industrial metal in a worsening economy. I also am entering in a limited fashion, with 2 more buys coming during pullbacks.  The potential for this trade is around $23 for a timely re-test of 48, say within what is left of the year. The gap today bothers me, but 5% of gaps do not fill and this one could be one of those. The gap at 46 however is a magnet and will certainly fill.

Here’s the chart:

This entry was posted in Matrix Sentry TA, Silver, SLV, Technical Analysis. Bookmark the permalink.

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