Mine SLV Below 50-day Moving Average

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iShares Silver Trust (NYSE: SLV ) — This exchange-traded fund (ETF) reflects the price of silver owned by the trust, less the trust’s expenses and liabilities. It is intended to constitute a simple and cost-effective means of owning physical silver bullion. SLV ran to over 75% above its 200-day moving average — a huge overvaluation — before encountering profit-taking. It has already fallen 16% from its high of just four days ago. A “normal” correction could result in a decline to below its 50-day moving average now at $37.76. A 50% correction of the move from its Jan. 25 low of $26.03 to the high of $48.35 would land it at around $37.20 where it could again be accumulated. Buyers should enter positions in SLV below its 50-day moving average by carefully averaging into positions with partial purchases on declining prices. Stop-loss orders are suggested at 15% under the average price of purchases. Silver is projected to exceed $50 an ounce before the end of 2011. If you have questions or comments for Sam Collins, please e-mail him at samailc@cox.net . View Survey