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.
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More Top Calls From Mike
This past Monday, with Nike (NKE) poised to report earnings later in the week, Mike Paulenoff told MPTrader members that "NKE is vulnerable to a press into the 140-143 target zone either ahead of, or in reaction to, the earnings news."
NKE was trading at 161.75 at the time, and by the week's end the stock was 149.59, having hit a low of 148.
Back on August 18th, nearly two weeks ahead of ZM's (Zoom Video Communications) earnings report, Mike Paulenoff cautioned MPTrader members about the stock.
Mike wrote: "The price structure, which has pressed relentlessly lower (15%) since its 8/05 rally high at 404.35, is probing -- and trading below -- its 100 DMA, now at 345.67, and is considerably beneath its 200 DMA, now down-sloping at 367.20.
In our Top Call article a month ago, we told you about how Mike Paulenoff called AAPL's upside continuation, with the expectation that the stock could extend a little higher before upside exhaustion.
AAPL, indeed, went on to stair-step higher to reach a high of 157.26 high last week, overshooting the upper boundary of Mike's 153-156 projected high-zone by just 0.8%. It then proceeded to initiate the expected bout of weakness that accelerated to the downside this past Friday.
On August 11, Mike Paulenoff alerted MPTrader members to a significant upside reversal signal in AMZN.
Mike wrote that "the 500 point decline is nearing downside exhaustion," noting a preferred downside target zone of 3180-3200.
Fast-forward to August 20, when AMZN pressed to a new multi-month corrective low at 3175.76.
On August 3, Mike Paulenoff alerted MPTrader members to the developing setup in AAPL that also would eventually impact the broader market:
Mike wrote: "AAPL continues to levitate within a high level digestion period and pattern off of its ATH at 150 hit on 7/15. All of the action since mid-July certainly resembles a Triangle pattern atop the May-July upleg from 121.68 to 150.
