Silver and gold may be in for a healthy correction.
When one begins trading it is important to realize that it is like any other business and your goods are your stocks. There is a basic rule that one must learn and never forget when buying and selling merchandise. You must be prepared to accumulate your products when there is a panic and sell them when there is euphoria. One has to sell when the product is in demand and the investment public becomes aggressive and buy when it is out of favor and the public shows little to no interest. In August of 2010 and January of 2011 precious metals both gold and silver presented excellent buying opportunities.
Please note as silver surpasses our late January target and continues its parabolic move since our buy signal, that my goal is to make significant profits and not get greedy for the extra 5-10%. Do not get me wrong. I believe silver and gold’s long term trend could push gold to $3000 and silver to $100 by 2013, but I am welcoming a short term healthy correction of at least 20% in silver before I will consider buying again. I will wait for pullbacks and not chase silver at these elevated levels. The key to selling correctly is buying at the right time when the commodity is oversold and out of favor. Parabolic moves end with significant corrections and I would like to see a healthy pullback. This current blow off move means that a correction could be quite painful for the investor who has overextended themselves accumulating at euphoric levels. A healthy correction will improve the chance of an orderly and healthy uptrend and provide my readers with a secondary buypoint.
My basic objective of this report is to help investors secure profits and realized gains. You must sell and take partial profits as targets are reached. Selling at overhead resistance or while it is still advancing is reminiscent of the great investors such as the Rothschild’s and Bernard Baruch who stated that no one gets the top or bottom. The goal is catching the majority of the move.
Please note as silver surpasses our late January target and continues its parabolic move since our buy signal, that my goal is to make significant profits and not get greedy for the extra 5-10%. Do not get me wrong. I believe silver and gold’s long term trend could push gold to $3000 and silver to $100 by 2013, but I am welcoming a short term healthy correction of at least 20% in silver before I will consider buying again. I will wait for pullbacks and not chase silver at these elevated levels. The key to selling correctly is buying at the right time when the commodity is oversold and out of favor. Parabolic moves end with significant corrections and I would like to see a healthy pullback. This current blow off move means that a correction could be quite painful for the investor who has overextended themselves accumulating at euphoric levels. A healthy correction will improve the chance of an orderly and healthy uptrend and provide my readers with a secondary buypoint.
My basic objective of this report is to help investors secure profits and realized gains. You must sell and take partial profits as targets are reached. Selling at overhead resistance or while it is still advancing is reminiscent of the great investors such as the Rothschild’s and Bernard Baruch who stated that no one gets the top or bottom. The goal is catching the majority of the move.
-Umesh Shanmugam(my view)
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