Best Thread Silver!

[dmt257]

Silver is a stubborn sob. It goes down, but never for long.

 

[DashRiprock]

sweeeet

 

[Doomberg]

Lol i was gonna wait for another slight dip down but it niggled at me to long anyway, wish i did this morning now as i'd of been 2k up.. although there will certainly be many other opportunities with silver

 

[isatrader]

Attached is the three two years logarithmic charts from the last 10 years. The 2002 to 2004 move, the 2004 to 2006 move and the current chart.

The current move may be the biggest percentage wise but it looks very similar in style. Something to consider for the newbies to silver.

 

[DashRiprock]

close here

 

[dmt257]

This is what im wondering right now.

 

[DashRiprock]

id leave it now mate, the tradeable opportunity has gone. anything else is punting from graphs.

there were a couple of good shorter term trades to be had along the way as well

 

[dmt257]

Yep, not looking for trades. Just pondering whether its going to be a short term downtrend. Personally I haven't a clue. Shame I missed out the up move, its not like I couldn't see all the signals:innocent:

Another nice call for the sell though:clap:

 

[amit1986]

Taking a nose dive now

 

[DashRiprock]

looks like stops then program selling to me, but im not listening to any news

 

[amit1986]

I agree - purely stops. I am watching SSRI right now (silver stock) and I can tell it's all stops being hit...a major area of support was broken on the daily chart. If you were watching the order flow, you should have seen the flurry of selling that came as it broke support.

 

[amit1986]

Check out the spike in volume...would have been nice to fade the move :-(

 

[DashRiprock]

im just watching the futures charts with no tape or dom, but you can see where stops would have been and volume spikes from market orders coming in

 

[dmt257]

What stops? You mean they forced price up to trigger longs, only to sell into them and their stops are hit on the shoot down giving an extra kick to the move?

Makes me wonder if I should be trading real money if I don't know this.

 

[amit1986]

silver futures?

damn, would have been to take a long...such a simple and obvious trade...

 

[amit1986]

What stops? You mean they forced price up to trigger longs, only to sell into them and their stops are hit on the shoot down giving an extra kick to the move?

Makes me wonder if I should be trading real money if I don't know this.

It's obvious silver was going to be weak today - no doubt. Since it's been on an uptrend lately, there are going to a tonne of sellers looking to close their positions (either because they are in a long or because they need to sell in order to meet new margin rules). Thus, more sellers than buyers.

As it gapped down this morning, it started with a spike in selling pressure. Who was buying from all these sellers? The market maker was. Then at one point the market maker stopped buying and let all the short covering and speculative buying drive the price higher. Price actually started ticking up (contrary to what most traders believed would happen), forcing those who went short to cover (hence, buy) thereby adding more buying pressure. As the price was ticking higher, market maker was slowly liquidating his long position to all those buyers by appearing on the ask. By the time the market maker had sold all his contracts, there were no more buyers left. In come the sellers.

All those people who bought early in the day were now covering as silver fell to new lows. Check out the daily chart as well...especially for SSRI - it penetrated the 50-period EMA and SMA...inviting stops to be hit. A lot of people use those MAs as trailing stops.

 

[DashRiprock]

see graphs (silver futures, dunno what expiry, 1m graph*)

quite a few good examples of this today on silver tbh

*Dash give yourself a good talking to, 1m graphs ffs.

 

[dmt257]

Thanks very much guys. Very interesting!

Please let me know if you are aware of any good resources covering this topic. I already ordered the Market Maker's edge a few days ago which Im assuming will cover this some.

 

[DashRiprock]

earlier on in the day I said to shorten targets; this is why I said it, and the minute I posted it is shown on the graph

 

[Chartsy]

silver pooped