Commodities Essential - June 24, 2011

Alert: silver continues to meander. 


Let’s place an order to add ZSL on a stop.


 Silver continues to meander in a sideways range, and it has fallen back again from resistance at its 100-day moving average. It continues to look heavy. Additionally, gold is continuing to move lower today, perhaps signalling that yesterday’s market scare was not just a flash in the pan. I think it makes sense to position for some silver downside once it starts to break. Let’s place an order to add ZSL (ProShares UltraShort Silver Fund) on a stop to play for a breakout that could happen soon.


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 Trade Essentials.   


ZSL (Last Price: $19.04)   


Buy shares of ProShares UltraShort Silver Fund, symbol ZSL, at $19.50, STOP; this order is good till cancelled. Then, only if this order is filled, place an order to SELL ALL your shares of ProShares UltraShort Silver Fund, symbol ZSL, at $17.90, STOP. This order is good till cancelled. 



[Please note this is a 2x-leveraged, inverse fund which means it will move roughly twice as fast, and in the opposite direction, as the underlying price of silver.]