The chart below is a chart of SLV that goes back one year:
The chart above shows that SLV entered a long term down trend in late November of last year. Since that time, the ETF has remained in a bear market, so no long positions would have been permitted since that time.Although the long term trend still remains down, the shorter term trend has turned up. That's not good enough for me to buy into this quite yet, but it is a step in the right direction. Remember, the odds are most strongly in your favour when both the long and the short term trends are both up.
There is an ultra short silver ETF that also caught my eye this week - the symbol is ZSL:
I am always on the look out for weak ultra ETFs to short. I talked about this strategy before, but now I'd like to discuss yet another benefit of shorting ETFs.
Often people who want exposure to precious metals are looking for safety and security and are naturally concerned about investing in ETFs. One concern in particular is counter-party risk - the risk of the ETF provider going bankrupt.
The beauty of shorting ETFs is that in the unlikely event of this occurring, you would profit massively, since being short, there is nothing that you have to pay back - the ETF would have no value. Of course, this reason alone is not enough to short an ETF, but it merely is one of the many advantages of doing so.
Anyway, I will attempt to short ZSL on Monday at the open.
