My basic objective of this service is to help readers secure profits and realized gains. You must sell and take partial profits as targets are reached. Selling at overhead resistance or while it is still advancing is reminiscent of the great investors such as the Rothschild's and Bernard Baruch who stated that no one gets the top or bottom. The goal is catching the majority of the move.
Once my technical targets begin getting hit, I begin to reduce my exposure as the price continues to advance past that target. One has to remember that the reason we are in this position of sitting with hefty gains is because we bought right in late January as gold and silver were oversold and reaching long term support. Now in late April three months later silver has reversed reaching overhead resistance and gold is still in the process of reaching the $1,600 target. I would use gold's upper resistance line as a more valid place to look for profit taking opportunities on both metals.
It is important to learn to sell when others are too optimistic and buy when others are scared to death. Silver (SLV) is close to 70% above the 200-day moving average, moving parabolically and surpassing overhead resistance, while gold (GLD) is only 12% above the 200-day moving average. This is extremely divergent from the historical mean. We may see silver stalling while gold plays catch up. We are in a buying hysteria and short squeeze in silver. During these times it has historically been wise to sell into euphoria. When the herd begins exiting it may be painful. . .the pigs wanting the top may get slaughtered. Stay tuned to my daily intelligence report as these parabolic moves must be monitored.
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