May 13th 2019, Silver Chartbook


Our approach is one of very low risk. We aren’t sitting for long times in entry zones and expose capital to risk. We rather believe in tight stops followed by a reentry, if warranted for. It is certainly a bit more work, but it saves a lot of money. You might have noticed that more often than not our entry timing is as such, that prices quickly, after entry, move in our favor. This supports our quad exit strategy where we take risk immediately of the table by taking initial, partial profits.

Looking at our last weeks chart book this approach works well for us and we made 2% profits right away on that initial run.

Consequently we have a stop in the market now at entry levels. This ensures a guaranteed profit and a low risk position.

If you compare the following two daily charts, you will find the not uncommon divergence between silver and gold, with gold leading.

Silver daily chart as of May 11th 2019, relative weakness towards gold:

Silver in US-Dollar, daily chart as of May 11th, 2019

Silver in US-Dollar, daily chart as of May 11th, 2019

Gold daily chart as of May 11th 2019, relative strength towards silver:

Gold in US-Dollar, daily chart as of May 11th, 2019

Gold in US-Dollar, daily chart as of May 11th, 2019

What this means is, that there is a likely chance that in retracements form the upper resistance line (1) (see chart above) on gold, silver might get stopped out retesting the entry level zone.

We are about to enter golds cyclical summer doldrums where prices can meander for a while here and trade sideways. Therefore, a reentry approach is way more beneficial than sitting this out with capital at risk.

No one knows when gold will break through its upper boundaries (1), but following that lead is advisory.

Another way to time reentries is watching the contrarian NASDAQ futures (chart below). They indicate a brief bounce here but could as well run out of steam quickly, which would give us the green light for reentry.

NASDAQ 100 E-mini futures on May 11th 2019 as a contrarian indicator for reentry timing on silver:

NASDAQ 100 E-Mini futures daily chart as of May 11th, 2019

NASDAQ 100 E-Mini futures daily chart as of May 11th, 2019

All markets are related and to pin point ones moves in and out of the market it helps tremendously to look prismatic through various instruments for finding that sweet spot.

Acting upon those sweet spots and rather reenter positions than sitting long term through high risk zones, is a feasible approach to mitigate risk and keep cash safe.

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About the Author:

Outstanding abstract reasoning ability and ability to think creatively and originally has led over the last 25 years to extract new principles and a unique way to view the markets resulting in a multitude of various time frame systems, generating high hit rates and outstanding risk reward ratios. Over 20 years of coaching traders with heart & passion, assessing complex situations, troubleshoot and solve problems principle based has led to experience and a professional history of success. Skilled natural teacher and exceptional developer of talent.Avid learner guided by a plan with ability to suppress ego and empower students to share ideas and best practices and to apply principle-based technical/conceptual knowledge to maximize efficiency. 25+ year execution experience (50.000+ trades executed) Trading multiple personal accounts (long and short-and combinations of the two). Amazing market feel complementing mechanical systems discipline for precise and extreme low risk entries while objectively seeing the whole picture. Ability to notice and separate emotional responses from the decision-making process and to stand outside oneself and one’s concerns about images in order to function in terms of larger objectives. Developed exit strategies that compensate both for maximizing profits and psychological ease to allow for continuous flow throughout the whole trading day. In depth knowledge of money management strategies with the experience of multiple 6 sigma events in various markets (futures, stocks, commodities, currencies, bonds) embedded in extreme low risk statistical probability models with smooth equity curves and extensive risk management as well as extensive disaster risk allow for my natural capacity for risk-taking.


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