Did You Capitalize On Our SLV Call (+17%)?
by Mike Paulenoff
May 31, 2020 • 1:08 AM EDT
On May 7, as the iShares Silver Trust (SLV) broke out of a moving average cluster just above 14.00, Mike Paulenoff noted that "a big directional move [was] approaching" which would initially challenge the 14.80 prior rally high and beyond that 15.65/85.
Mike's annotated SLV chart (below) shows more about what he liked technically, while fundamentally he has outlined 3 backstory reasons to justify sustained strength in silver as he's continued to follow it closely in his Live Trading Room:
1) Growing perceptions that inflation will be in our future largely because of the gargantuan expansion of monetary policy and fiscal spending,
2) Belief that the US and global economies will recover sharply by the end of the year, exerting upward pressure on demand, and
3) The view by "professional" traders that silver is way too cheap in relation to the price of gold. Add to that the prospect of a lower US Dollar, and you get a combination of forces contributing to silver's rally.
By the close of this past week, SLV was at $16.66, up 17% from Mike's May 7 post.
Join Mike's Live Trading Room for more calls like this, and follow his live coverage throughout the session on the S&P 500, Gold/Silver, key market-moving events, and stocks and ETFs poised to take advantage of the macro trends.
Mike Paulenoff is the author of MPTrader.com, a real-time diary of his technical analysis & trade alerts on
ETFs for precious metals, energy, currencies, and an array of equity indices and sectors, including international
markets, plus key ETF component stocks in sectors like technology, mining, and banking.
Sign up for a Free 7-day Trial!
More Top Calls From Mike
On March 11, with AAPL in a month-long down-leg and trading at 156.34, Mike Paulenoff posted a relatively bullish analysis for MPTrader members, writing:
"I am watching AAPL more closely than usual these days, as a bellwether for the health/vulnerability of the overall market.
Back on March 1, 2022, Mike Paulenoff posted a technical "heads-up" about JPM for members of MPTrader.com, writing:
"JPM has broken down in glaring fashion from a 12-month Top Formation that my pattern work addressed four weeks ago in case JPM sustained beneath 139-140. Today's low at 134.15 violated my shallowest target zone of 135.50-137.50, and points next to 128-130, with an outlier target zone in the vicinity of 115.
Last Monday morning, May 2, as the equity market careened to the downside ahead of Wednesday's FOMC meeting and the prospect of the biggest rate hike in decades (50 bps), Mike Paulenoff alerted MPTrader members to a potentially significant developing technical setup in AMZN, which had hit a new 13-month low.
Mike wrote: "AMZN pressed to a new corrective low at 2367.50 this AM, a full 37% beneath its ATH.
On Thursday, April 14, Mike Paulenoff cautioned MPTader members about possible near-term upside exhaustion in YIELD and downside exhaustion in longer-term bond prices (and the TLT), writing:
"10 Year YIELD spiked to a new multi-year high at 2.84% today, but Daily Momentum remains well below yesterday's Momentum high, which is our first indication that perhaps the vertical assault in benchmark YIELD is nearing upside exhaustion.
JPM (JP Morgan) reports quarterly earnings this coming Wednesday during pre-market hours. Investor reaction to this particular report is positioned to have a significant influence on the price of the stock. JPM's outspoken and high profile CEO Jamie Dimon already has warned us that changing (i.e.
