Home > stock charts, Stock Market, technical analysis > Silver miners over Silver

Silver miners over Silver

Silver nearly touched $50/oz, and has since fallen all the way back under $40.  In a blink up and back.  Silver miners did not really participate in that last leg up for silver.  In fact, they consolidated while silver rallied that last $10 or so, and have now fallen even more.  The ratio of silver miners as measured in silver is well below its recent 50 day moving average.  Below is a 2 year chart of SIL divided by SLV.

I am going to play this by buying some SLW which is at the very bottom of a rising channel.  It behaved very well today in a deeply red market in which silver itself was also very red.  As a pairs trade, you could go long SLW and short silver via ZSL (though with Silver at its 50 EMA, I’m not interested in the pair right now).

Advertisements
  1. No comments yet.
  1. No trackbacks yet.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: