If you’ve been waiting for the correction in silver to play through, these are interesting levels to consider punting at. This will be the fourth time in fourteen months that silver has tested support at $26 – and the previous three times, it’s held.
As I unfortunately don’t have access to a futures account at the moment (“Hi my name is Brett, I’ve been clean from futures trading for 12 months…”) – I went searching for other trade vehicles that could provide some real juice. Too bad the chart does not look at enticing for our favorite “call option on a call option”, producer Silver Wheaton.
Lower highs and lower lows for SLW the last 12 months – not a pretty chart. (Source: StockCharts.com)
With the markets getting pummeled day after day, it appears that the deflation bird has once again cawed its way from the dead into the pole position. It’ll be interesting to see if gold and/or silver wake up a bit, on anticipation that Bernanke will start to reach for the CTRL + P command (hat tip Dr. Evil for the hilarious analogy).