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The Silver chart sure looks good.


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TRADING COMMODITY FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND MAY NOT BE SUITABLE FOR ALL INVESTORS. YOU SHOULD CAREFULLY CONSIDER WHETHER TRADING IS SUITABLE FOR YOU IN LIGHT OF YOUR CIRCUMSTANCES, KNOWLEDGE AND FINANCIAL RESOURCES.

 

The Silver chart sure looks good.

Silver weathered the 2-day commodity sell off very well.  I still attribute the sell off to Goldman Sachs unnecessary banter and more importantly the idea of US budget cuts pulling cash flow out of the economy.  Now the silver broke almost $2.70 off the highs, but this is not much compared to the $11 run it has enjoyed for the 3 months.  The issue is that I can see some potential bearish fundamentals headed for the silver market, and while the silver chart sure looks like a healthy bull market it is also the same type of market that could be setting up for a dramatic sell-off weeks / months down the line.  This could very likely come directly after an acceleration to the upside putting in a parabolic spike high.

In my mind there has to be a balance. Neither technical nor fundamental analysis alone is enough to be consistent.

Please give me a call for a trade recommendation, and we can put together a tradestrategy tailored to your needs.

Be safe!

Ted Seifried (321) 277-0113 or tseifried@zaner.com

Please check out my Blog at: http://tedseifriedtrader.wordpress.com/

Additional charts, studies, and commentary can be found at: http://markethead.com/2.0/free_trial.asp?rid=Seifried

Also, please read "Feedstock Focus: Soybeans;" an article I wrote for the February, 2011 issue of Biofuels magazine, focusing on the critical role that soybeans (and soybean futures) will play in agri-business in 2011. You can download it at: http://www.zaner.com/3.0/tseifriedbiofuels.asp

See Daily chart:

Futures, options and forex trading is speculative in nature and involves substantial risk of loss. All known news and events have already been factored into the price of the underlying commodities discussed. The limited risk characteristic of options refers to long options only; and refers to the amount of the loss, which is defined as premium paid on the option(s) plus commissions.

FOR CUSTOMERS TRADING OPTIONS, THESE FUTURES CHARTS ARE PRESENTED FOR INFORMATIONAL PURPOSES ONLY. THEY ARE INTENDED TO SHOW HOW INVESTING IN OPTIONS CAN DEPEND ON THE UNDERLYING FUTURES PRICES; SPECIFICALLY, WHETHER OR NOT AN OPTION PURCHASER IS BUYING AN IN-THE-MONEY, AT-THE-MONEY, OR OUT-OF-THE-MONEY OPTION. FURTHERMORE, THE PURCHASER WILL BE ABLE TO DETERMINE WHETHER OR NOT TO EXERCISE HIS RIGHT ON AN OPTION DEPENDING ON HOW THE OPTION'S STRIKE PRICE COMPARES TO THE UNDERLYING FUTURE'S PRICE. THE FUTURES CHARTS ARE NOT INTENDED TO IMPLY THAT OPTION PRICES MOVE IN TANDEM WITH FUTURES PRICES. IN FACT, OPTION PRICES MAY ONLY MOVE A FRACTION OF THE PRICE MOVE IN THE UNDERLYING FUTURES. IN SOME CASES, THE OPTION MAY NOT MOVE AT ALL OR EVEN MOVE IN THE OPPOSITE DIRECTION



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About the author


Ted is a Vice President at Zaner in charge of the Zaner Ag Hedge Group.  He specializes in agricultural hedging employing various strategies using futures, futures spreads, outright options and option combinations.  He believes it is paramount to be able to use different strategies to adapt to market conditions.  Ted works with large to mid size grain and livestock producers and end users in North, Central and South America.  He also writes a blog on Agweb called “The Ted Spread”, frequently posts articles on Insidefutures.com and is often quoted in Reuters and Bloomberg.  
 
Please feel free to give Ted a call at (312) 277-0113, or shoot him an email at tseifried@zaner.com

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