Silver continues to frustrate to the upside. My prior counts were invalidated by today's price action.
Having said that, I will be keeping my short position. The reason why is as follows.
Looking at the new preferred count on the minuette chart, we had an ((a))-((b))-((c)) down, followed by three waves up, which I have labeled ((a)). That high was just exceeded today intraday. Next we had three waves down which takes silver to a new low on 8/10, which I have labeled (a).
So basically what happed is an ((a))-((b))-((c)) down followed by an ((a))-((b))-((c)) up, where ((b)) is both a barrier triangle, and a running triangle (makes a new price low).
The ((c)) wave should now unfold into five waves.
Looking at the lower chart, we see several more three wave moves heading higher, so we have a likely ending diagonal. My preferred count has us in the third wave of the ending diagonal, which appears to be extending.
In summary, prices will be grinding higher in a choppy up and down fashion over the next few days, but should not exceed my prior stop loss at 40.15 on the SLV, or 42.30 on the /SI futures.
Disclaimer
I'm not a financial advisor nor a broker/dealer. I neither provide financial advice, nor make investment recommendations. Nothing you read on this website constitutes a solicitation, recommendation, or promotion of any particular security, transaction, or investment.
I may at times discuss trades or trade setups, but this is meant to be purely a discussion point for entertainment and educational purposes only.
I may at times discuss trades or trade setups, but this is meant to be purely a discussion point for entertainment and educational purposes only.
Wednesday, August 17, 2011
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Notation
| Wave Degree | Motive | Corrective |
| Grand Supercycle | ((I)) ((II)) ((III)) ((IV)) ((V)) | ((a)) ((b)) ((c)) |
| Supercycle | (I) (II) (III) (IV) (V) | (a) (b) (c) |
| Cycle | I II III IV V | a b c |
| Primary | ((1)) ((2)) ((3)) ((4)) ((5)) | ((A)) ((B)) ((C)) |
| Intermediate | (1) (2) (3) (4) (5) | (A) (B) (C) |
| Minor | 1 2 3 4 5 | A B C |
| Minute | ((i)) ((ii)) ((iii)) ((iv)) ((v)) | ((a)) ((b)) ((c)) |
| Minuette | (i) (ii) (iii) (iv) (v) | (a) (b) (c) |
| Subminuette | i ii iii iv v | a b c |
| Micro | ((1)) ((2)) ((3)) ((4)) ((5)) | ((A)) ((B)) ((C)) |

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