May 03, 2011 closing call on silver

Silver shortside trade (long ZSL from 14.50, 15, and 15.25 for the record) finished its 3d excellent day, as it tests the max %loss over 5 days in the last 10 years.  The rebalancing of portfolios based on margin requiremnts looks to be the main driver here, but the fundamentals of silver as a hedge, as a store of value, as an industrial commodity appear to me to be unchanged

once the support level is established, we can begin tactical tradeframing once more with rebound targets at 44 and 50 for reward:risk framing.

no hurry, no worry; as long as the Fed prints, the logic of silver’s upside remains intact

Updated: May 4, 2011 — 5:30 pm
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