silver

Judging by a discussion on CNBC's Fast Money program on Tuesday, it's time to sell JPMorgan Chase (NYSE: JPM).

Joe Terranova, a regular panelist on the show, extolled the virtues of the megabank, but it rang hollow to my ears. After initially observing how the shares are technically challenged because they've slipped below the 100-day moving average, Terranova gushed:

Etf trading has made it so easy for traders and investors to get maximum exposure to the entire market without the high fees of mutual funds and manager. There are now etfs covering almost every investment type whether it’s stocks, indexes, sectors, commodities, bonds, real estate, currencies etc…

Last week, silver decided to thrust above the toppiness that caused so many traders to fret (see "Silver Topping Out?"), only to score a fresh double-top.

Dec 6th, 2009
The first half of last week started out strong with stock and precious metal ETFs moving higher. The week ended with less certainty of direction. The energy sector underperformed the market with crude oil and natural gas moving lower.

Real-time Monetary Inflation (last 12 months): 4.8%

Momentum's shifting in the world of commodity investments. That becomes apparent when you look at the relative strength of the equity-based Market Vectors Agribusiness (NYSE: MOO) and RVE Hard Assets Producers (NYSE: HAP) ETFs as we have in this week's feature ("Whither Commodity Stocks?").

Are you sold on gold? The precious metal outperformed every major equity index in the world in 2008. The question is, can gold—and other precious metals—keep on flying? Or would buying today be buying high and selling low?

Everyone is talking about commodities as the place to be in the coming months. I tend to agree, but it is still important to know where each commodity is trading to maximize returns and reduce risk.

Friday’s unemployment rate in the U.S had a surprising subtle affect on the market as the number climbed to a 26 year high. The Bureau of Labor Statistics released a whopping 10.2% result, far worse than analyst’s expectations. In addition they showed a -190k NFP figure, compared to expectations of -175k.

Nov 4th, 2009
Precious Metals ETF have gone wild the past 2 weeks. Last week we saw gold and silver prices drop sharply as it shook out short term trader’s stop orders before breaking out and moving higher. Also there is a disconnect between the gold and the dollar.

For centuries silver has always played “second fiddle” to its “prettier, more popular cousin,” gold. While gold has continued to be the precious metal that everybody wants, loves and adores, wise investors are now beginning to take a good look at the value of silver in a diversified portfolio.

These three charts of GLD, SLV and GDX show Wednesday’s price action as gold and silver moved higher while precious metal stocks sold down with the rest of the market. This is generally a bearish indicator for gold and silver but because I am starting to see this happen more often and traders are ready for the market to top any day, I am seeing this as a bullish indicator.

The article describes dynamics of silver investing & silver ETFs. It ain't just forks & spoons. Personally, I like silver ETFs for the volitility: it makes for high option premiums & opportunities to enter & exit, but still retains some hedge qualities.

The market continues to whipsaw traders out of positions as volatility rises. I mention a few charts to explain where each of these commodities is trading.

My Gold Stock Breakout Model – Monthly Chart

A worse than expected U.S. Durable Goods Report triggered a sell-off in the equity markets before the opening, putting pressure on stocks from which the indices haven’t recovered. Downside momentum in the December E-mini S&P 500 market could take the contract to 1031.00 today. The NASDAQ is feeling pressure from worse than expected earnings from RIMM.