Tuesday, July 19, 2011

Bizarro World

9:14 am (Hawaii) Such a strange world I live in. In between naps in the wee hours here in the islands, I was prepared for a dip in precious metals after the past week, a scorching-hot run. I actually anticipated a dastardly move by the CME mafia, but not to the point of setting a stop-loss order in my lone silver trade (AGQ), or getting puts (not an options kind of guy).

I awoke a few minutes ago to find the scenario enveloping: Spot Silver hacked silver on the neck, sent from 40+ to 39 in one hour, a straight line. Totally has the footprint of Comex assassins, which also means margin hikes are around the corner. AGQ was at 220 yesterday and briefly was there today. I was groggy and half-asleep early this morning when I saw it at 217. I eventually sold my AGQ at 205 for a small profit (bought at 196 or so). The sad thing is I'm sure almost all of us in silver could sense the eerie calm before the storm today.

Really, wasn't it so calm, it was almost unnerving. Hardly any price action. I had to check a time or two whether my internet connection had frozen up. No movement. Thin volume. It was the typical environment for the CME mafia to move in and kneecap the price.

If most silverbugs' intuitions are right and margin hikes are coming, ZSL is a way to benefit while the "value" of paper silver enters a valley. ZSL is already up 8.6% (14.42) today.

My other trades, DGP, XG and GSVC, are a mixed bag. XG is still up against the grain after last week's secondary offering mauled longs. It went from 15+ to 12.00 and has rallied to 13+. DGP is down more than a buck or so, but that's a trade I will hold for a long time. GSVC, my teeny weeny trade, dropped from 19+ to 16+ today on the same thing that walloped XG: a secondary.

GSVC's offering will bring in $100 million (far bigger than XG's offering), but with just 3.34 million shares, the stock price took a huge hit. That's another trade I'm holding long term. Eventually, Facebook will go public and GSVC will benefit tremendously. I may add a few more shares here below 17.

It's AGQ that stung most today. My trading portfolio was up 4.5% yesterday while the Dow Jones dropped 147 points. Today, my port is down 3% while the Dow is up 208 points. It's bizarre, not shocking. Earnings week is here and traders are being opportunistic. Flimsy stocks like PSUN were at the top of my Regular watch list earlier. Now it's CHGS (+9%), GMCR (+6.1%), LULU (+5.2%), VCLK (+4.9%).

BIDU (+2.7%) is doing well, and AAPL (+0.7%, 376.57) reports after the bell.

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