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JTH

AGG, Silver, and the Dollar

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by
JTH
, 09-20-2009 at 03:57 PM (1451 Views)
At this moment I'm looking for AGG to test the lower end of the rising price channel.

On the Hourly charts, AGG failed to put in a higher high. Instead it put in a double top, and we do have a lower open gap yet to be filled. This could give us a nice M pattern.

On the Daily charts, Thursday we bounced off the Bollinger band and Friday we put in an inside day or Bearish Harami

On the Weekly charts although we put in a .03 higher high, we closed at the exact same price as the previous week.

TSP Withdrawal Plans-4-png


FYI: I like to trade in and out of silver from time to time. I'm currently short silver via ZSL (Silver Ultra Short ETF) @ 5.05 a share.

I started noticing a change in the dollar when SLW (a silver miner) fell out of its rising price channel.

At that same time, both ZSL and UUP (dollar traded EFT) were bouncing off the bottom of their desending price channels.

TSP Withdrawal Plans-5-png


Although the Dollar may bounce back further, On this Daily chart I'm not so sure it can muster up enough strength to get above the white line's resistance, let alone the top of the descending price channel.

TSP Withdrawal Plans-6-png

Cheers... JTH

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  1. GUCHI's Avatar
    jth

    i have been checking about silver,but don't know anything about it, other than precious metal gold and silver may be king if we go into hyperinflation. i'm thinking of going long on silver, where would one start ???
  2. JTH's Avatar
    You can go two routes, you can own physical silver or buy stocks.


    For physical silver, I buy the standard American Silver Eagle coins at my local coin shop. Demand is high right now, so you will pay way over spot price (maybe 25 bucks). Still, once you own it, it's yours.

    As for Stocks, for Silver, I like the SLV ETF backed by physical silver. I also like SLW a silver miner that is priced cheaper, but trades somewhat proportionally to SLV.

    Having said all that, I realize there are a lot of EOTWAWKI folks (many I know) who spend every waking dime buying up all the precious metals they can. I myself would rather divert my resources to tools, and food because if the world ends, I can't eat my gold. As much hype as precious metals gets, most investors don't dedicate more than 5% of their portfolio to it.

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