Monday, February 21, 2011

All eyes

All eyes are on silver futures right now (spot trading up 5%) and tomorrow all eyes will be on silver stocks.   Insane move up and continuation on the breakout over 31.  If you're not already involved: at these levels in our opinion there is no good risk/reward trade anymore.   If you want in long, wait for consolidation/base/pullback.  If you want to short....wait for what you perceive to be a blow off top reversal, then get in with stop above.  We have no interest on the short side -  there are easier trades out there than to short this panicked freight train. 

Crude futures up 6%.  Notice how the previous geo-politcal ramp (Egypt) was given back all back (on WTI, not Brent).   However, we think this one will have more sticking power aas Libya is one of the top ten exporters of crude in the world.   Imagine what will happen if this middle east storm spreads to the big leagues, i.e. Saudi Arabia.