Hi ho silver!
During Wednesday's Live Trading Webinar (replay available here) we decided to go long on Silver at the $12 line and we were rewarded early this morning with an explosive run to $13, which netted a lovely $5,000 per contract for our Members, which is the same as the $5,000 per contract we gained on the S&P (/ES ) as it popped from our 2,400 line all the way to 2,500 this morning before also stopping us out – salvaging $4,000 gains at 2,480.
A lot of that rally is fading as we get close to the open and we won't be jumping in again until we see where the bottom is as we got very close to 2,300 on the S&P yesterday so we'd really love to see that again for another Futures entry. The Futures are an excellent way to make money in volatile markets but you have to take profits off the table as things turn around very quickly. The EU markets opened at 4am and everything went sour then, which is why we take the money and run on a good rally before then!
Remember, it's very easy to rally the Futures as they are very thinly traded and, once the exchanges open, the volume sellers take full advantage to finish selling what they were trying to get out of yesterday so, if we closed on volume to the downside and reversed in the Futures without any Fudamental changes – it's very likely that the selling will resume in the moring until (if) the sellers become exhausted. That's especially true in a market like this – where sellers simply can't find enough buyers to fully unwind their positions.