Big move in silver today — it threatened to break 44.61 today but reversed sharply just before with the FOMC decision, and then went insane to the upside when Bernanke actually took the stage. It stopped for the day right at resistance/R2. Our “edge” here is gone for now, be it shorting against 49-50 or buying over 44.61. We’ll probably leave this alone for tomorrow. We won’t short against 50 as now it’s the second test and technically a buy. However it’s too extended for us to go long through 50. This means we’ll probably stay to the side-lines until we see a good risk-reward set-up in it form over the next few days.
The reason we’ve been so focused on silver lately is simply because that is where the best action (edge) has been. Once this shifts back into stocks we’ll happily return our focus to equities.