Thursday, May 26, 2011

In a tank of sharks

10:05 am (Hawaii) Trying to be a pilot fish ... it's not getting easier. It's getting harder. Choppy seas in the world of precious metals. I was fairly good a while back when Spot Silver climbed to 49, spun out of control and fell to 32. But the trades in EXK, AGQ and XG the past few days leave me yearning for balance and peace of mind. I didn't lose a lot in the sells today, but watching a $525 paper profit turn into a $370 loss was disappointing. I'm too jaded to be angry or frustrated. It's more like surrender now, not the kind that will keep me from trading paper silver and gold, and absolutely not the kind that will scare me out of buying physical PM.

It's just another step along the way, understanding the manipulation and fear in this market. My Metals list is now 41% green, a whole lot better than early this morning when it was around 21%. Then, only really good news could keep EXK above water, but that eventually sold off. It's just doubly difficult when spot price gets yo-yoed by the puppet masters and takes everything down with it no matter what. We don't have a fair opponent for the CME Mafia, an entity that can slash and decapitate with as much frequency and force as the Big Money. We are at the mercy of the phantom puppeteers.

That's why I have avoided going long silver for the most part overnight. Last night's exception proved to myself that it was a good policy. There's no sensible or fair reason why Spot Silver should not be at 38 or 39 right now, and yet fairness and sensibility have NOTHING to do with price. This is the game many of us have chose to play, and when the rules are completely altered over and over, bent to one party's advantage, then it becomes pointless.

For us peon investors and traders, there is no edge.

There is no consolation in being 100% cash while EXK runs back to 9.85, especially when I gave out and finally went to sleep. AGQ is struggling to get back to even for the day, and XG is hopelessly dead money for now, as are most small miners who have no news to report. (Just another reminder of why I stopped trading smaller stocks long ago.) ZSL is still atop my Metals list with a 3% gain, far off its high of the day.

Even with the nice gain in gold and silver in the past few days, it just doesn't smell right. If the Chinese gold futures market is released from restrictions, maybe things really get interesting. Maybe when the Chinese silver futures market opens (expected at the end of this year), we get balance. Or maybe the puppetry continues and grows to a second continent.

The mystery is what permits potential. The blatant chicanery is what shuts that potential down. Between PM options expiration today and my uncooperative sleep patterns, I may resort to putting stop-loss orders on any future positions. Or I'll have to learn to buy puts. But whatever the case, watching minute by minute has become fruitless for me. There's a next step ahead and I'm taking it. Just don't know where it will go.

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