Taking Profits on SLV

This is what I wrote just before the opening bell regarding the iShares Silver Trust ETF (NYSE: SLV):  "My work argues that the measured upside move off of the Sep-Oct base pattern has hit its target in the vicinity of 17.35/40, which more often than not is a compelling reason to EXIT the market, at least for a little while, to give ourselves some time to reassess the technicals as well as our committment level to wanting to continue to have a long position in the aftermath of a rapid climb from 15.64 to 17.53 or 12%."

Remarkably, for the second day in a row the SLV has come within a cent or two of my stop but failed to hit it, which has enabled me to participate in additional price gains. Today's low at 17.22 nearly hit my stop at 17.20 prior to pivoting to the upside for a run 17.52 to test today's high at 17.53. At this juncture, because my work is telling me that the prudent approach here is to take profits, we will exit our long model portfolio position in the SLV and reevaluate the action during the upcoming hours. MP 10/08/09 11:15 AM ET

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