Today's sell-off in SLR was expected and welcome. SLR has been climbing a wall of worry toward a potential "double top". The fact that the "Nervous Nellies" puked up their positions without a false break of the previous high is extremely encouraging. These guys have lost their positions and will probably never get back in.
I guess if you are a technical trader, your finger would have been on a hair trigger, but I have held these babies resolutely since 20c. I'd ideally like to see a flag or pennant form with a base around $3.60 to work off the short term overbought condition and build the energy for the breakout. When this thing breaks $3.90, it pretty much ensures a 10 handle in my (feeble) mind.
Uncle Les is a genius. SLR will be ASX100 before the gold bull market is done.
SLR Price at posting:
$3.72 Sentiment: Buy Disclosure: Held
