PRECIOUS METALS UPDATE

This post is from a commodities trader that writes a monthly newsletter on the precious metals market. He is a current Option Magic student and has agreed to post his newsletter on this blog so that you can benefit from his experience in the gold and silver markets. As a disclaimer...I (and Option Magic) are not responsible for the content or recommendations in this newsletter.

Merry Christmas traders. It is Christmas Eve and all is quiet and well. But not for long. As a Christmas gift to you , I am sending this update before Mondays open. The March silver chart clearly shows a pendant formation on top of another pendant formation on top of a bull flag. It just doesn't get much better than this. Even though this past weeks activity was quiet and less than hoped for, I can assure you that this market is coiled up tighter than a rattlesnake in a Dixie cup. It is highly probable this market will begin to break out starting on Monday. If it doesn't begin next Monday then look for major movement the first week of January and carrying into the second week and possibly the third before we see a corrective pullback. I fully expect silver to trade in the $35 range by mid January unless a major unforeseen event occurs. A strong possibility remains that it may very well trade much higher. Possibly $40 or more but I suspect that may be a little too optimistic for right now, but not for long. This market is CLEARLY going to go much, much higher in the very near future. As always, consider your investments carefully before placing your trades. DO NOT rely on ANY one source. Consider several sources that you trust and THEN make your trade decisions on your own. Never blame bad trades on info given to you by others. YOU are ultimately responsible for telling your broker to place the trade. WATCH your trades daily and exit them if they start to look bad. LEARN all you can. Education is your best defense against losses. God bless you and yours this holiday season. May all your trades be happy trades.....Chaz.