4:29 am (Hawaii) Opened a position in SLV (41.60) for the first time in a month or so. Last time, it was trading at 32. Seems like ages ago. My intention with SLV is to ride it up, sell, then mount up again on technical indicators. Nothing fancy. Just increments of profit, if well executed.
WNR, meanwhile, has journeyed between 17.90 and 18.20, generally. Sheer drops lower and rocket bursts up in the hour since the opening bell. It's been a whipsaw market so far in these two issues. Generally, the indices are flat and WNR and SLV really aren't showing any serious potential for bigger moves today than they've shown. No predictions, just ready for anything here.
Silver is up to 42.63 and crude oil is down a smidge (108.44). Much as I want to hold WNR for the short term, I'm tempted to get out on the next ride above 18 and start playing it like an amusement park ride. As long as the caffeine lasts, I might do that.
AAPL is down fractionally to 330.02.
7:23 am (Hawaii) Big selling in SLV at 12:17 pm (Eastern) and the selling lingered for a good half-hour or so, sacking shares from the 41.80 level to below 41.60. SLV struggling to stay above 41.60 since, and with the big run the past few days, we are now in danger territory. Volume is very light and more profit-taking will commence before the close, before the weekend.
So, what had been a moderately profitable position is now very moderately negative for me in SLV. And as I type, the volume selling is returning and SLV is at 41.51. I almost entered late yesterday at 40.80, and shares topped out today at 41.82. There's lots of profit to be taken. Silver generally still has room to the upside, but in the immediate term, can't fight the situation.
WNR is holding above 18.00, relatively flat compared to the wild swings early today.
10:33 am (Hawaii) Does it really matter why silver stocks are trading up after hours? Does it matter who is moving SLV, which closed at 41.83 or so, and hit 41.92 a minute ago? If it weren't naked shorties from JP Morgan, it would be some hedge fund. If not them, then someone else. It's all about the food chain and there will be manipulators, buyers and sellers to the very end. So the question is, sell SLV here and eliminate risk over the weekend? Could any of us really be truly shocked if Blythe shoots down silver sometime today? Or Sunday?
I have no major problem holding SLV through a dip. It's going higher, plain and simple. Supply and demand is a great thing if you're long and it's a total bitch if you're short with demand this insane. Unlike bubbles of the past that were based on paper-thin IPO stocks with no profits, major debt and no real substance, silver is real enough to bonk any shortster on the cranium. But it will definitely continue to ride up and down. I'd rather sit out the plunges, so a sell here wouldn't be the worst thing.
I might just wait until CNBC's post-market shows are done. Someone's bound to hype up silver and gold again, talking about China's inflationary woes and the need of the bank (and investors) there to buy precious metals.
WNR closed at 18.18 and I am content to hold over the weekend. It doesn't really trade after hours anyway, not with that kind of spread.
AAPL sank to 327 today, just about pushing the near-term floor (326). I think AAPL straightens out as earnings day looms, but I wouldn't touch it here either. Any scent of bad news and more stop-loss orders will send shares right through that floor, and the next floor would be 300. AAPL at that level would be quite the bargain.
Update 10:58 am (Hawaii) It wasn't that long ago that "experts" saw the flood of buyers in gold proclaim a bubble was about to burst and that all the speculation, even in defensive mode, was doomed. Well, gold had its selloff, but bounced right back. But what about silver? When novices (like myself) and the rest of mainstream America get goofy crazy to acquire silver metal and silver stocks, isn't the bubble about ready to burst?
Is silver getting close to its "jump the shark" moment?
And, as I type, the ask for SLV in afterhours trading is now 42.00. Silver futures are at 42.96.
Jane Wells (CNBC) talked to a lot of silver investors and traders this week.
Video: Silver, buy or sell (Apr 15 2011)
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