Made $8,294.65 Profit the past Week on Silver & Oil Moves

Made $8,294.65 Profit the past week on Silver & Oil Moves ( & I wasn't even the big winner of the group) 

Biggest question a lot of traders had last week was "Why did Silver drop so much in 1 week" . 

Many posts on Twitter on silver & oil the past week and 1/2 but how many traders actually made some money from those moves? We were on top of the moves and traders in our group traded oil & silver in different ways but using similar chart reading skills.

We were lucky in chat to having played $ZSL and $SLV put options ( @mmassassin probably played it best with his short play on Silver on Friday April 29th ) you can see his post here   We had been talking that week of possible silver topping into $47-$50 areas. Some in the chat had $ZSL some had $SLV options plays & some traded #silver futures ( $Si_F) – Worked out well into the next week as we saw Silver drop from $49.52 to $34.39

@MMassassin on one batch he closed out Friday May 6 th made over 1,100% profit but had other 100%+ gainers as he locked up profits on weekly silver options. Amazing trading & works out for him as he was away this past week on holiday ( big congrats MM)

@stockguy22 I made a monster recovery on $ZSL , although I was too early to trade it but made another play a long on Friday May 5th on $SLV that I closed out on the Monday May 9th for just under 6% profit along with #oil long $UCO for another 6% profit — Was  great couple of weeks on just silver and gold plays ( $ZSL $SLV $SCO $UCO I made $8,294.65 profit with nice %s from Thurs May 5th to Monday May 9th ) I was most pleased with the ZSL recovery which I would have taken a big loss if we popped Silver $50 and dropped ZSL $10 that would have been my line in the sand on ZSL maximum loss.. Worked out a bit lucky but we had some great analysis in the chat during this time.

@CaptKirk has made amazing long/short plays just playing the futures & provided great commentary – I actually think he called the top on Silver in the chat the week before by saying we had topped into that $47-$49 level  ( He said " Stockguy22 i think u are going to recover on u're $ZSL since i'm joining you short on #silver today ") That was Thurs April 28th.

Another trader in our chat followed the long silver play by trading Canadian ETF HZU.to for a silver bounce from last week and locked up over 10% profit into this past Monday. by end of day was up over 13% on remainder. 

 

So why did silver ($SI_F) drop ( or crash down so much ) recently ?

1) the major reason was the change in margin requirements by the CME – The CME Group tightened restrictions for speculative trading on Silver trades by making traders put up additional cash to hold the same positions. 

2) over 70% of commodity trading is being done by speculators – 10 years ago was only 30% ( so on the chart below before major crashes like the March 2000 .com bubble you had many "speculators" (me included) playing .com names – I think this had a factor in the recent silver drop too. We have been talking in the chatroom if the CME will get pressure to apply what they did with Silver margins to do that to Oil ($CL_F ) they've done a few but it is an easy way for them to push down the price of commodities.  May be more difficult on #oil since so many other factors involved like supply/demand , US $ , OPEC etc. but we'll see going forward if we hold this $100 level , pop to recent highs of $114+ or drop into the $80 -$90 levels again. 

3) US $ ( US dollar ) moves have an effect on it as well 

4) Osama Bin Laden getting killed? – well it did coincide with that evening of Sunday March 1st just before news broke of the US Forces killing him but then partially came up that evening. 

5) Volume activity – Prior to the drop we had noticed major volume increase in $SLV $AGQ and $ZSL silver ETF's prior to the monster drop of the week of May 1st & 2nd  ( i've posted some charts in the chatroom to show that & one of the reasons I still kept & added to my ZSL ) 

Will Silver recover from recent huge drop ? –

We had made a good bounce play on silver from Thurs May 5th to May 9th but i'm currenly out of Silver plays– If we bottom out this week I may try another bounce play but with tight stops in case silver drops back towards $30-$34 — but watching today's recent drop to $35 as its providing a good risk/reward long play – Join us in the chat to see when the next time we play #oil or #silver 

 

We had people in the chat making for more on this silver drop & bounce then I did but I loved the analysis shared by different traders in our chat as the moves were occuring ( prior & from the current Silver levels) –  You could have traded Silver Futures, $SLV options, $ZSL $AGQ $HZU.to $HZD.to — We had used these same techniques on trading the recent oil volatility by trading $UCO $SCO $USO $HOD.to or HOU.to so you don't have to just play Oil Futures and the ETFs have provided another good vehicle to play these commodity moves.

If you want to join us in the chatroom for a 2 week Free Trial CLICK HERE  & see what learn from our group of excellent traders. One nice trade like this & can pay for the membership many times over  " One of the newer members made enough on the most recent $UCO trade to pay for an entire year's membership with change to spare. 

Thought to share this chart on Markets – Capt shared the first chart & I was saying you can apply that chart to the recent silver run & crash if you change the public name to "speculators"  – Only thing the chart does not show is how silver had gone up nicely like a escalator but down like an elevator so quickly in 1 week. 

Double click any of the charts to see them bigger

 

 

 

If you were a member of @stockguy22 then these are the privateFeed posts & charts you would have received on the past oil & silver moves _ Live buys when i enter/exit & charts with notes as per each trade. Again if you want to join us test us out for a 2 week Free Trial click here and check through our past charts/ trades so you can see if its worth it. I think you will find the information very valuable and should provide you with some great profits. You can also see a chart on ZSL where i was a bit soon calling the top on Silver but i started to notice the huge spike in volume on ZSL

check the live trades on our stockguy22feed ( private feed for members only)

 

 

 

 

 

 

 

 

Posted in Charting & Analysis, Commentary, Futures, Options, Stocks