Monday, June 13, 2011
Move over, Rover
9:04 am (Hawaii) Got up before 8 am, missed the first half of the session. Being 90% cash, it was good as always to get sleep. But with the indices up slightly, it's a bit unnerving to see Spot Silver and Gold sliding. Not shocking, though. It's summer swoon time, and Gold has been lethargic in the past two summers. Silver below 35 could become 34, 33, 32 and start triggering stop-loss orders among paper traders.
I'm still neutral on PMs. If price for gold and silver dip, I'm shopping. No PM bull wants to see gold or silver drop 20% or 50%, but nothing is impossible in a manipulated market. Of course, even at 20% lower, there will be an incredible amount of buyers from overseas. After all, if prices are being held down in order for China to acquire "cheap" gold and silver — our penalty for trillions of dollars of debt — it would make even more sense for price to be cut even more, temporarily.
ZSL has gone from +6% to +8% in the past hour. Metals list is 21% green, 76% red. Most of the greens are bear ETFs. GPL is up 4.9%. COPX is flat (+0.1%). AG (-8.1%). AGQ (-7.9%), MCP (-5.3%) and a ton of plays are well beyond 1.5% down.
Whatever. It's time to move over, Rover. You know you can.