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When an asset creates what looks like the Left side of an Eiffel tower pattern, the right side often follows! Joe Friday shares this morning that Silver is setting on a multi-year support line right now.
The Right Side of an Eiffel tower pattern could pick up downside selling momentum if the rising support line breaks in Silver.
Mark…yes blog viewers did make some big time gains.
Their are just times I feel better about those and time when just shorting the 1x and holding on is much better to do.
I remember… and it was not only Premium members who doubled their investments! Careful readers of this blog were able to profit from your various silver posts.
Thanks also for the SEF idea!
Mark S.
Mark…We did use ZSL last year, several times. Premium members doubled the original investment in, it on several short term trades. I still don’t like it though! It requires investors to be spot on and short-term focused, which I DO NOT LIKE.
Due to banks out performing the 500 buy a double since last winter, I have encouraged Premium members to short the banks and long the 500, looking for relative weakness to start creeping into the banks. Most would use SKF, the bank 2x inverse. I DO NOT LIKE it, so we are using SEF, the 1x inverse.
So back to Silver…I would rather short SLV than own ZSL. Hope this helps a little.
Chris
Thanks as always. I’m always watching the blog!
I remember from last year: you never liked double and triple and super-ultra short ETFs (and for very good reasons). But I remember you made an exception for ZSL on occasion, since there was no single short silver ETF. Is there any other way to take advantage of the silver Eiffel tower ?
Good to hear from you Mark!
I would much prefer to “Short SLV” than own ZSL or to short futures. Even though Silver is down almost 45% from its highs last year, the 2x inverse Silver ETF (ZSL) has done soooooo poorly they had to do a reverse split last week to bring up its price!
Not good!!!
Chris
Thanks, Chris. Are you comfortable about owning the short silver ETF (ZSL)?
Or shorts on world or emerging markets (EFZ, EUM)? They broke support and are in free-fall, but how far?
Erik…Thanks for the comments and your viewership. I am not a fundamentalist on Silver supply. All I know is that Silver hit the same high last year as it did back in the early 1980’s and has given back 44% of its value since last summer.
Silver and Gold continue to be inside of a falling channel, creating a series of lower highs. I suspect Mr. Sprott has forgotten more about Silver than I know. The one thing I am comfortable with… from a “price perspective” I’m funadamentally comfortable not owning Silver at this point in time.
Chris
The issue with silver is that the fundamentals are very strong, in that the ambount of silver reserves in the ground and hte amount of it used for industrial gives it great fundamentals and this is what Eric Sprott has said. Thus their is a disconnect between charts and fundamentals. Also the real inflation adjusted Hight of silver is about 137.