Break out, break in

It doesn't matter where you've been
Snake pit
Lion's den
You need someone to be your friend
Truck to
Electric Kingdom
Who you talkin' to?
Who? 
Electric Kingdom

This is not the remorse of a whiner. It's just a thorough look back at EXK, the little silver train that could, and how Le Fly announced to the world that he was plowing massive amounts of cash into this stock. As of today, EXK, which has run hugely already, has broken out. I mean, this is the definition of a breakout, is it not? All-time high. Monster volume.

EXK 1-year daily

And here's SLW, which broke out yesterday and had a bearish, indecisive candlestick today. Of course, instead of buying the breakout stock, I bought the wavering one. Not the smartest choice. Sometimes smart doesn't win.

SLW 6-month daily

The nature of silver in the market is so warped. Mitigating factors that most other stocks don't have to deal with, so technicals only mean so much. But that EXK chart sure is pretty.

More Tuesday reading
Trader Dan: 4 Hour Silver Chart (Mar 1 2011)

Harvey Organ: Gold at record levels, silver advances (Mar 1 2011) "My guess: JP Morgan to cover a shortfall or the Chinese moving silver bullion onto the shores (remember the announcement that the advisor recommended silver to be included in official reserves?)."

Also in Harvey Organ's post: JP Morgan fighting 10,000 lawsuits (Feb 28 2011)

King World News: Rick Rule: Upside blowout in gold, destabilization in silver (Mar 1 2011) "... the limited availability of new mine supply including byproduct supply in view of increasing demand. Meaning in addition to the near-term, you could see explosive action in silver in the future. You could also see a sustained two or three year bull market in silver."

Stewart Thomson: Gold, Oil & Dow (and silver): Death Spiral Update (Mar 1 2011)