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June 29, 2005

Follow-up to "Silver Moon?" Blog, Jun-28-05 Wed., June 29, 2005, 6:23 PM

Yesterday I previewed the silver stocks RSI charts. The article was called, Silver moon? Tues., June 28, 2005, 11:23 AM.

I see I received a reader comment:
" Bill- Silver was down today, but one day after your comments, Silver stocks are up 4-7 %. What is up? Is your readership THAT big???? :) MW"

What can I say? The dance goes on.

Mike, it's all in the rhythm! Actually, these are all small cap stocks, which can move up and down quickly. I'm so tired, I haven't even looked to see if the same thing happened to the goldminers. But, I suspect it did.

Here are the five heaviest weighted Silver stocks in the market along with their interactive (click on the link in the heading) and day's charts (below) for the 30-minute, daily, weekly and monthly time series data analyzed with the RSI:

30-Minute Data Charts of Silver Stocks

Daily Data Charts of Silver Stocks

Weekly Data Charts of Silver Stocks

Monthly Data Charts of Silver Stocks

You can see from yesterday's charts (for the 30-Minute data) how the RSI has moved from under 30 to a much higher value as the share prices have also moved up in the day and a half since my article.

As an observation, the Daily, Weekly and Monthly RSI data values have increased much less.

You can also see from the following table, how the prices for the Silver stocks moved from shortly after my article yesterday at 11:23 am (+6.96 pct), and how much they moved today (+5.49 pct).

The table RSI data is from the 30-Minute charts yesterday and at the close today. You'll see that CDE and SIL are the most over-bought on a technical basis.

Other than to point that out for educational purposes, I will not add further commentary. The Silver stocks may run higher tomorrow, or they may not. I'm a little too tired from last evening to look further. Besides, my objective here is to teach you how to trade, not tell you what and when to trade.

The use of 60-Minute and 30-Minute data charts (and less) is intended for Intra-Day and Intra-Week Traders. But, long-term traders also ought to use this same indicator as one of the tools suited for timing of buy/sell orders.

Remember; you buy into weakness, and sell into strength.

Buy Low, Sell High. No matter what the sell-side will "advise" you to do, this is a buy-side traders' golden rule.

Chasing stocks on breakouts just plays right into the hands of parties who are trying to distribute stocks. What you are in effect doing, if you do that, is to buy the hype those parties put out into the market. You would simply be buying their "stories".

Do it my way, and you will always be in control. It's your capital; you need to be in control.

Happy trading.

Posted by Posted by Bill Cara on June 29, 2005 06:22:21 PM | Category: Trend & Cycle Phases