10/15/10: The British Pound has joined the bull camp as it too has begun to appreciate in earnest vs. The US dollar. Amid this orgy of dollar selling many commodity prices have hit upside objectives (please refer to this weeks CTS spotlight: Silver for more) so please take some profits and be careful. Having said that, there is still further to go to hit our US dollar bearish target and there doesn't seem to be any impetus to halt its decline until after the November elections and maybe even into early January. The Canadian stock market (an excellent barometer for commodity related stocks) has confirmed its bullish breakout of last week suggesting that commodities and commodity related stocks are still very much in the spotlight. Enjoy the rally, check out CRI's latest OnlyDoubles trading opportunities and again, please take some profits along the way...
Silver
Regular reader of CTS and CRI's other publications will recall how bullish we got of Silver last spring. Indeed, CTS has pointed out how the Silver market has been trending higher now for more than 21 weeks and most importantly, our upside target in the $24.00 area has been hit!
If you refer to the chart above you will see a very basic yet extremely powerful chart pattern explained. As the A-B-C-D pattern suggests, if the market can break the top of the flag pole formation (in this case it was just under $20 - Point B) one can feel quite confident that the market will move towards the upper channel line (in this case near $24 - Point D).
Readers will also remember CRI suggesting one ought to accumulate Silver Call options last May, when prices briefly broke through the previous high (at $19.50). Specifically, CRI suggested investors ought to take a good look at the January, 2011 $18 calls that at the time were trading at $1.75. Currently, those options are roughly $6.00 or 250% higher. Indeed, it seems quite logical for those that did participate in the trade to take some profits (smells like another OnlyDoubles trade to me).
For those that did not do the trade, forget about Silver for the time being!
Too often I find that people get most interested in a market AFTER THE MOVE. As the chart clearly demonstrates, buying now is just asking for trouble and yet it is now that the public is getting interested in investing again.....ugh!
Instead, maybe it would be a good idea to subscribe to CRI's OnlyDoubles Monthly subscription service and learn about what markets CRI expects to double going forward...
just a shameless plug......
That's all for this issue of the CTS Spotlight,
Brian Beamish FCSI
the_rational_investor@yahoo.com
http://www.the-rational-investor.com
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