SLV will likely make a 2-year price high today. As of yesterday, the put-call ratio made a 1-year low. This is evidence of extreme greed:
If you are long SLV, a reading of extreme greed is usually a good indication that you need to start planning your exit strategy. Note: I didn't say exit right away. Nor did I say start building a short position.
Chart courtesy of Schaeffers.
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Missed a lot of points here, hell of a time for a vacation.
ReplyDelete5 months later, its up approx 25%.
ReplyDeleteDear Anonymous
ReplyDeleteI posted this blog entry on May 12, 2010. On that day, SLV closed at 19.12, a two-year high close.
The very next day, SLV started its decline to $17.06 on July 28, just as the extremely low put-call ratio foretold.
Except by July 28, the put-call ratio was at a 1-year high, evidence of extreme fear. There were no sellers left. Click the Schaeffers' link in the blog entry and see for yourself.
So conditions changed radically. It's no surprise the current up trend in SLV started on July 28 when when the put-call ratio made a 1 year high.