NFTRH Interim Update 3.15.13 Silver Technical Status & Notes

Today I am adding the 2x silver bear fund ZSL back again.  The reason it is mentioned in an update is not as a recommendation for anyone, but as a potential tool for people who are heavily invested in the precious metals to hedge with, if that is something they have decided they want to do.

ZSL daily chart

I looked at the chart and liked what I saw.  There is an uptrend channel, a green MACD (though triggered down) and a potential bullish flag.  So I bought it.

SLV daily chart

Flipping it around, SLV is in a downtrend meandering in a short-term sideways pattern.  MACD is red, but triggered up.  Overall, I don’t care for it.  Chart for silver itself still says poor man’s gold can go to 27 easily.

Another thing I do not care for is the precious metals sector’s continued flatness even though the stock market has had a negative reaction to news that most people consider inflationary (CPI).  Yet this could also be a classic case of a market trying to wait out peoples’ patience and fake them out.

The HUI and GDX meanwhile are holding little short-term patterns that could resolve bullishly given last week’s volume surge, the triggered MACD and a constructive RSI.  But they are in down trends until they no longer are.  I am still keeping an eye on the 349 parameter for HUI.  The pattern could be a bear flag, but last week’s up volume (following down volume) differentiates it from the BF in February, which featured large down volume followed by no real upside conviction, volume-wise.

So at the least the ZSL positions can be considered a hedge that I wanted to let you know about.  It feels like changes are coming to the markets but my feelings and a buck-75 might buy me a cup of coffee.

I have got to run out now, but am going to try to get a look at the CoT data for gold and silver later.  If they have improved yet again, the ZSL position is likely to be a very quick trade.  At any such time that the ZSL ‘bull flag’ breaks the wrong way (i.e. silver breaks upward and ZSL down) the position would be eliminated.

Just an FYI update this afternoon.