at resistance, the fed is your friendalthough at resistance keep in mind the effects of a rate cut will dampen the usd sending commodities higher
WPM trade ideas
when doves cry-- gold and silver shinespowell speaks tomorrow in my opinion based on data ive been watching he may emphasize the need to be proactive. to be swift. the tool belt as he described last speech will require creativity due to limited abilities on a historical basis.
taking advantage of dumb moneyso the theory here is: not all ETF holdings are created equally. WPM has a 15-25% holdings weight in a few silver mining etfs. with the feds pivot and likely need to make aggressive accommodation in the future and likely resumption of QE. id expect money to flow likely wine into precious metals etfs. but... not all etf holdings are evenly distributed. wpm is one that will capture a good bang for the buck.
WPM - Not goldI like WPM, but it trades better on an inflationary run more than anything. Silver is the bulk of its streams which should not perform in an industrial slowing environment. This stock is on its high end and I think it is a fish out of water. Buy it later when it pulls back.
ultra silver play. part of my studies into hacking order flow. WPM makes up roughly 20% of the sil etf and comprises a major holding in other major metals etfs. that being said money flow is not equally distributed and is based on a certain weighting. this is the same concept of how i played BA from december melt down. the idea is to capture the uneven distribution based on the major holdings of those etfs. wpm is a stand out canidate. it just clipped a major milestone resistance wise. lets see what happens. yolo
WPM prepare for launchgold, silver, and bonds want to hear powell say uncle. rather playing any i prefer to choose the biggest holdings within those sectors. one stands out to me option wise, asset allocation wise, and pattern wise. wpm is about to make itself at home in ranges not seen for some time.
WPMPrice above the cloud ( bullish )
Above 200MA ( bullish )
Buy $21.38
Take Profit: 22.56 R=2
Stop Loss: $20.84
Thank You
All comments are welcome
WPM: Sell OTM puts for 9% p.a.On Friday, June 16, we successfully closed our previous short-put trade on WPM (see previous post below).
Today WPM is showing continued signs of weakness, in an otherwise strong market. It is currently trading towards the lows of its trading range. It could continue to show weakness if the broader market continues its journey upwards. However, in the context of a much anticipated market correction and rather high equity valuations, any market correction should help push safe haven assets (precious metals) upwards.
STRATEGY: Sell WPM 11% OTM puts on the September expiry
RISK: Get exercised at the strike and end up long the asset 13% below current price
REWARD: 9% annualized yield
SELL WPM 09/15/17 $17 PUT = $0.40/SHARE (8.81% annualized)
Depending on your risk appetite, the $18 strike and the Jan 19, 2018 maturity could also be interesting.
LONG precious metals so the WPM1. If the Trump will not pass his tax reform and has more problems inside US (FBI case), a market may correct and at that time, the precious metal may rise.
2. USD is weakening ---> price of precious metal will increase.
Target around 30 USD.
