Daily chart, silver/US Dollar 12/03/2019, “aggressive participation and risk out”:
We took an aggressive daily long position on November 26th in silver. A week later we reached our first target and took partial profits.
Aggressive participation, why? Daily chart, gold/US-Dollar 12/03/2019, “financed for profits and risk mitigation”:
We added to this precious metal sector exposure by also taking a gold position one day after that. Targets for mitigating risk on the trade were similar to silver met on the 3rd of December.
All our trade entries and exits were posted in real time in our telegram channel.
Silver/US Dollar 12/04/2019, daily chart, “stopped out for beta, volatility and relative weakness”:
The day after risk mitigation/profit taking, silver due to its volatility and beta behavior got stopped out with the rest of its position at break even entry levels. Later it also proved to have relative weakness towards its peer gold.
Gold/US Dollar 12/11/2019, aggressive participation-why? Daily chart, “gold survived retracement”:
The gold position luckily did not get stopped out. It survived the price retracement with its remaining 50% of position size.
As much as we see in silver the higher odds with profit targets as high as 50-100 US-Dollar and relative low risk to the downside, the picture in gold is mutually attractive. Avoiding shortfalls through volatility, beta, sector rotation and principles of relative strength/relative weakness to name a few (all previously elaborated on in our weekly chart books), motivates us to take positions in gold alike. Our long term view in this case of wealth preservation and overall portfolio risk mitigation by increasing our holdings in the precious metal sector supports our aggressive partaking in the markets.
Aggressive participation, why?
In our humble opinion, the marriage of fundamental evidence of imbalances and the stacked odds of probabilities in charts, point towards a low risk opportunity on the largest time frames. As such we are aggressively reloading on smaller time frames to build a long term silver positions of substantial size.
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