RIDING THE SILVER BOLLY ...



The market has the right set-up, and if it moves up from here, it could ride the silver bolly to $10 by Feb.2006.

No guarantees, so watch the action to see if we are staying on track.


Here's a small Silver producer, Genco Resources (v.GGC),
which is already riding the "twin tracks" upper Bolly, and the 21d.MA.



I own it from C$0.80

2/
Here's a soon-to be in production, gold producer: Galantas Gold (v.GAL)



Galantas is planning to list on London's AIM market, probably from Jan.2006

I own it from C$0.10

Dr,

1) many thanks for the advice on endowment plan in your other thread

2) Could you briefly explain what the upper and lower lines (RSI & MACD) of the three lines in your charts mean? You don't need to explain the middle line, even I can work that one out.

Dr B,
With respect, I have to disagree with you're $10 Silver analysis.

Sold SIZ5 heavily on the 17th ...and selling rally's.



The Commercials(aka, deep pockets) are bailing out big time. Look out below !


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Malco,
If you look carefully, you will see that the Blue line is a 21day Moving average,
and the upper Bollinger band uses: 144d., with a 1.618 size range around it.

After some years of experimentation, i have found that these are the optimal settings for my charts.
Why not try them for some stocks you are following. They may help you find "inflection points."

If you are unclear what "Bollinger Bands" are, you can do a search on Google:
(I found this):
"Trading bands, which are lines plotted in and around the price structure to form an envelope, are the action of prices near the edges of the envelope that we are interested in. They are one of the most powerful concepts available to the technically based investor, but they do not, as is commonly believed, give absolute buy and sell signals based on price touching the bands. What they do is answer the perennial question of whether prices are high or low on a relative basis. Armed with this information, an intelligent investor can make buy and sell decisions by using indicators to confirm price action."
@: http://www.bollingerbands.com/services/bb/

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Look how gold share Newmont Mining (NEM) rode the Bolly/MA track back in 2003:
NEM chart with Bolly etc. indicators

and here's my favorite Silver stock: SLW chart
I own a ton of the SLW.wt warrants

Hi DrBubb,

I have looked at this with interest and certainly see a pattern. I will be studying this further.

Now one thing (slightly off topic re: silver, but regarding the stock markets), recently you called the top on the Dow, but looking at the same indicators on the related chart, they are contrary to what I would expect for a call like this - i.e. the dow was nowhere near the top band.

http://stockcharts.com/def/servlet/SC.web?...;Lh14,3]&pref=G

Were you using other methods (fundamentals, etc) to come to your dow prediction?

"recently you called the top on the Dow, but looking at the same indicators on the related chart, they are contrary to what I would expect for a call like this - i.e. the dow was nowhere near the top band. "

GOOD POINT.
What i have noticed is that, often before a sharp drop, a stock or index will turn down BEFORE it reaches the top bolly band. Similarly, I have misssed lows, because I wait for the price to get to the lower bolly, and it never made it there

Dr. Bubb,

I was going to put some silver stocks into an ISA and hold. What do you think of standard stocks such as PAAS, SSRI, CDE? Any particular weighting?

Also, I see the US$ going down further to perhaps 50-60, so are US silver mining equities denominated in US$ an inferior bet?

Thanks.