Nobody is cuter than the Red Dog. Silver has had a great run since breaking above the $30.40 area (in addition to its massive run over the last two years). However, the second-place metal looks a bit over-extended at these current levels, and I’m looking for a “cute” pull-in.
I am short Tier 1 against the high $35.78 with an average price of $35.55. I will add through $34.97 if downside momentum comes in this afternoon. This is a very tough trade that I wouldn’t recommend for everyone, just wanted to share my thought on it. I’ve been told there is no need to be “cute”, but sometimes I can’t help it.
Target 1 for the trade is $34, and target 2 is $33. If it doesn’t trigger this afternoon, beware of the overnight as gold and silver have been trapping momentum traders.
*DISCLOSURE: Short SLV
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