SLV ZSL Rubber Band Theory. First thing, I'm not suggesting a BUY in SLV or ZSL at this time at all. Especially with all the new margin requirements and volatility going on currently but I am watching for the magic point in time, for a TRADE in the SLV. The Rubber Band theory is that the BBands are over stretched on the way up (SLV)(Parabolic) which would result in a giant snap back (pullback) to a mean. This giant snapback would result in an over compensated snapback to the down side then back up to a reasonable price mean. Looks like 2 STD BB is at 36 but SLV could over compensate to 32 or even 30 the initial breakout. With all these new factors like Margin requirements, Carlos Slim and Co. Dumping we could even see more volatility this time. Retail investors are still holding profits in SLV if it was purchased last summer and might be dumping now because of all the new press, call it "running for the doors." (Capitulation) At some point in time Carlos and Co. know this and are going to be ready to pounce once again on silver. Keep your eyes and price levels on alert. Personally I think this trade (longer term is done for the next 3 to 6 months, But for a 3 or 4 BB trade I'm in!
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