I took a short on silver on the big pop this morning because a) the implications of weak CPI and Retail sales favor gold over silver, but silver popped harder than gold on the data, b) because I hold some precious metals positions and this theoretically hedges, and c) because I don’t like the daily chart of SLV/Silver after it made a lower low to March’s low, bounced to a lower high to April’s high, and today bounced up to the SMA 50.
Again, I am not bear calling silver (although I think that is its short-term bias) but taking a shot against a moderate group of what I think are quality mining positions and a long (as in really long) term gold position. We’ll see how it works out.
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