Let’s catch up on Pan American Silver (PAAS). (November 12, 2012)

by DAN PAAS 
I’m Dan Fitzpatrick at StockMarketMentor.com on Monday, November 12th. I want to look at that Pan American Silver ( $PAAS Pan American Silver Corp ) real quick and this is why. This is pretty instructive. A couple of weeks ago, on the first, I noted this volatility squeeze; it was actually looking pretty solid, nice move out of these tight Bollinger Bands, very, very strong volume, higher than average, and it looked to me like this was poised to go higher. The very next day we got a reversal back into congestion, that’s a really good sign, and look at the volume, a really good sign that the squeeze did not work, that that breakout did not work, it was not going to work, and since that time, you know, here we got a little bounce off the 50-day moving average, and I like to see these squeezes kind of drift in to the 50-day moving average where break outs tend to be of higher probability. Well, that wasn’t the case, here the stocks just continued to go down. So now I’m looking at the 200-day moving average and I don’t even care about it, it has not proven relevant in the past, I mean sure it’s marked the downtrend, but all 200-day moving averages do that when stocks trend down, it’s because 200-days ago the stock was higher than it is now and that tends to be the norm. So my reason for pointing this out is, if you’re long this stock, this was really the break down here, about a buck ago, about twenty dollars and sixty seventy cents, something like that, just a couple days ago. So I would suggest just closing out this position, and you know if you’re long, or any other stock that gives you this kind of move. Don’t trade the hope strategy, you don’t make money doing that, so just let the stock go and move on. Okay members; get over to the Strategy Session, I’ve got a trade for your towards the end, and a lot of stuff that’s going on in the market is covered as well, so check that out.

Free Chart