PART III – ERIC SPROTT’S PSLV/ETF 2012 PRICE OUTLOOK


Author Patrick MontesDeOca, Director of CMT Group

Posted: 06 Feb 2012

I want to be able to take this opportunity and show you that besides trading in the gold market, you can also trade individual stocks, ETFs, and in this case for example, let’s take a look at the chart for the PSLV 2012 preview below.

This is an ETF that we like very much. It is managed by Eric Sprott, from Asset Management and it basically deals with the actual physical silver. The fund itself takes delivery and I think what Eric is doing with it is a really a good service to its clients because he has given the opportunity through the fund to actually world trade in the actual physical market.

So, we have different forms of investing in precious metals basically depending on your financial condition and depending on how aggressive you may want to get with this market environment, and how much capital you are working with. We can assist you in custom building a portfolio that would make sense to your personal objectives from an educational point of view.

In taking a look at the chart for a minute, we are basically looking at this fund to experience very strong rally into the first three months of 2012, and if you take a look at the real-time charts, the low came in as expected at the beginning of January and the end of December and now what we are looking for is an acceleration for the next three months all the way till about March 15th.

Ladies and gentlemen, what the price momentum indicator is telling us is to hedge or take some profits on the table or use options and futures depending on your sophistication of trading instruments, that you should take some action looking for a correction into April 15th, at which point we probably are going to experience the biggest rally for PSLV in 2012, and this could potentially last till about July 15th of 2012.

You can apply the gold Vedic Code Price Momentum Indicator basically to trade the PSLV in the silver market. I use it as a timing tool to trade silver futures, options, stocks, ETFs and obviously bullion. Using the lows that you see on the Vedic Code Price Momentum Indicator chart, these are levels that you want to use to accumulate or add to your long-term bullish positions.

Disclosure: I am long PSLV.

Additional disclosure: PRECIOUS METALS PRODUCTS TRADING INVOLVES SIGNIFICANT RISK OF LOSS AND IS NOT SUITABLE FOR EVERYONE. PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS.

Advertisements

Comments

  1. Just recapping. You forecast a run-up til mid March, and a corrective phase from then til mil April?

  2. Yes, That is correct.

    Patrick

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: