Market update

With silver at 14.44, it is right at overhead resistance.

What happens next is a coin toss. If I was day trading silver futures I would take some profits now but retain some exposure in case it breaks through resistance. If it does break through and move higher look for more, strong resistance at around 16 dollars.

If it can't break through resistance here, it will likely fall to support levels around 12 and a half.

That is simply another buying opportunity.

In all likely hood silver can't move past 16 without some type of correction in between.

Gold is in similar circumstances with strong resistance all the way from here, 997 through to around 1020. I expect a corrective pullback from here and that will be likely to put more downward pressure on silver, further reducing the odds that it can move past 16.

I don't try and trade the silver market. I am in acquisition mode when it comes to metals. I use pullbacks as buying opportunities. Silver is too volatile to day trade without hedging. I use other markets to day trade, markets that offer more investment vehicles to reduce risk.

Despite what some experts are spouting in unified voice, "Buy and Hold" isn't dead as they would have you believe. "Buy and Hold" is alive and well, as long as you are buying the right thing.



Good luck and Godspeed



JT

Legal disclaimer: This post is for informational purposes only and is solely the opinion of the writer. Nothing in this post should be considered investment advice. Before investing in anything, the reader is encouraged to do his or her own research and consult with a certified financial advisor, which John Tompkins makes no claim to be. John Tompkins and Toro Creek Investments accept no liability for financial losses or damages incurred by the reader because of this post.