Silver Weaton Corp----Time to Short!

Silver Weaton (SLW) purchases and mines for silver and other precious metals.  Silver Weaton has had a nice run, over 67% YTD gains.  They have reported record quarters and management has certainly been doing a great job.  I like Silver Weaton as a stock and a company...just not at the moment.

SLW is wayyy overbought and should be giving back gains in the very near future.  If you examine the technicals, this stock is ripe for a fall....which it did today but regained with the Fed's announcement.  This is a huge opportunity to purchase SLW Oct 26 Puts. 

Here is why SLW is overvalued:

• RSI is at 71.66--overbought territory
• MACD is at a ridiculous 1.186--huge signal of overbought status
• Williams%R is at -12.65---again way overbought
• Slow Stochastics is at 85.39--overbought
• Lots of recent buying activity

**If you do not understand what these indicators are please go to investopedia.com and look them up or wait until I make a post within the next few days of my most important technical indicators and how they are used.

As you can see, SLW is wayy overvalued and will be headed lower.  I recommend buying SLW Oct 26 Puts.  These will provide you with some very nice gains within the next few weeks when Silver Weaton takes a fall.

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