Silver Roars Back

After a massive 5% drop yesterday, silver surged higher again today by 3.5%. The iShares Silver Trust (ETF) (NYSE:SLV) is trading at $32.28, +1.08 (+3.48%). The drop yesterday was a major signal that silver may be near a short term top. Technically speaking, the drop tells traders that the retrace higher can be shorted as long as the 52 week high is not breached. The 52 week high on the SLV was $33.00. Gold is also trading higher today with the SPDR Gold Trust (ETF) (NYSE:GLD) trading at $137.44, +0.96 (+0.70%).  Gold had a much smaller decline yesterday and did very little damage to the uptrend on a technical basis.

The key to the silver trade is two faceted. Not only is silver a store of safety against inflation and global unrest but it is also a production metal. If oil remains high, it is possible to see global economies hurt. Should this happen, the production metal side of the trade would suffer, thus bringing silver in slightly.

About Gareth Soloway 168 Articles

Affiliation: InTheMoneyStocks.com

Gareth Soloway has been an avid swing and day trader since his days at Binghamton University where he studied Economics. After college, Gareth quickly excelled as a financial advisor, helping clients get their financial houses in order. While helping others gain financial independence, he continued to study the day trading and swing trading world, developing a unique market philosophy and proprietary methods. Following his work in the financial sector, Gareth went on to trade alongside professional traders. Unable to tolerate the hype of Wall Street any longer and having an amazing ability to profit using his developed techniques, Gareth Soloway decided to partner with his friend and colleague, Nicholas Santiago to form InTheMoneyStocks.com. Chief Market Strategist Gareth Soloway serves as the president and CFO of InTheMoneyStocks.Com.

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