Monday, May 23, 2011

Still no move in silver

My straddles at $34 on SLV are taking a hit today since silver is still not moving above or bellow 34. On the downside there is a short term  support level is around 32.5 and a long term one around 30. On the upside we have two short term resistance levels, 34.5 and 34.9. As a said last week, silver is at a crossroad it can sharply go in any direction from here (you can say this is my wishful thinking since I own a few straddles--))

Market in general is very frustrating from my point of view. The moves up or down are too short lived to make any profit using EMAs crossing on hourly chart. Please notice that the daily DMI has turned negative a couple of weeks ago but weekly DMI is still positive.

In terms of individual stocks there are plenty of stocks to short at this point. CLF, WLT, NOV are my favorite.

On the upside I'll keep an eye on AKAM. The stock is really down, it's even bellow SMA 200 so it's a "NO-NO" from my point of view but insiders bought a huge amount of stocks on Friday, so maybe they know something we don't (they know for sure!). If you want to gamble, this could be a good candidate.

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