Younger readers will have no clue to what the title of this blog means, but they can use the internet to look those words up.
Anyhow–According to Thackray’s Investors Guide, as well as Equityclock.com, silver can have strong positive seasonal tendencies in September. I’ve posted charts above of silver bullion, and below of the stock Silver Wheaton (SLW) -an equity that is highly dependant on silver`s fate. An interesting trade appears on both charts for silver and its related equities. There may be some significant upside potential for shorter termed traders on this metal every summer. It would appear that silver (and equities related to silver such as SLW) tends to form a summer trough around late June or July. This has certainly been the tendency since the beginning of the recent bull market in 2009. Within a very short period of time after a July trough low, silver and SLW have rallied to form significantly higher peaks by September or October. I’ve marked on the chart the summer buy arrows (bottom of chart pointing up) and autumn sell arrows (down arrows) for those years.
If you have a short termed trading side to you, this might be a nice one to consider in a couple of months. Silver is already setting up for a summer low. Watch for a trough and bounce for an entry signal in late June or July.
Keith on BNN television’s MarketCall Tonight: Next Tuesday May 27th, 2014. Phone in with your questions on technical analysis of your favorite stocks for Keith during the show. CALL TOLL-FREE 1-855-326-6266. Or email your questions ahead of time (specify they are for Keith) firstname.lastname@example.org