Silver Wheaton Up Strongly On What Appears To Be Blowoff Top In Silver (SLW, SLV)

Shares of Silver Wheaton

finished sharply higher today, gaining almost 4%, as the price of silver skyrocketed today, along with the other precious metals. The price of silver jumped more than 2% today to close at $20.48, in what many traders are calling a blow off top in the precious metals. A blow off top is the last big push to higher prices for an underlying instrument, whether it be a stock or a commodity, right before the instrument begins a correction. Since Silver Wheaton is a major silver miner, it is closely correlated to the price of silver. Traders may want to take some profits off the table if they believe the metals market is going to correct. It's certainly possible we do see some kind of correction in commodities, given the recent struggle of copper lately. Copper peaked around $3.53 per pound earlier in the month, and has been in a trading since then. It's possible copper could fall to the $3.40 level, as it looks to fill the gap set earlier in September. If traders believe in the blow off top in the metals, booking some profits would certainly be a wise move to make. Disclosure: no positions in companies or commodities mentioned.