Monday, April 25, 2011

Spot's pit stop


2:30 am (Hawaii) I managed to get up after a nap to prepare for the 2 am peon premarket (when us mortal retail traders can enter) and saw SLV struggling to stay above 47. Not that I'm complaining after it closed on Thursday at 45.53. But Spot Silver had traded as high as 49.81 overnight (Hong Kong). The price dangled, then fell below 47, where I exhibited a trace of patience. After the price kept falling and showing no strength, I opted to take a little profit and move on, selling at 46.70 for a $1 gain.

This was a partial position, very small — one-fifth of what I normally trade in SLV — and I thought about leaving it alone for at least another hour, or the entire day. But there's a lot of work to be done; I'm doing a bunch of it right now, even at this hour. And I won't get much chance to fiddle with distractions like the market this morning. So, I'm out. Having a very small position was good; less risk means less stress. Of course, a fuller position would've netted a much nicer profit, but I was comfortable over the weekend. Where Spot Silver goes from here is probably a two-way answer: up and down. I'd be a little surprised if there wasn't another run at 50, but there are going to be a lot of profit-takers here near that threshold number.

What a circus Spot has become. But it might be time for a breather.


Update 9:30 am (Hawaii) Last check, roughly 45 minutes ago, 25% of my watch list was green. It's been bearish all day heading into 1) Tuesday precious metals option expiration, and 2) Wednesday's Bernanke press conference. Fear lurks. 

Spot Silver is hanging above 47, though the furious action earlier abroad and in the states has slowed significantly. What was a blur is now somewhat of a bore. Mind you, I'm following just for entertainment purposes, not having a position. Had I kept the first buy in SLV at 31+, I'd be up 50% in a month or so. But who knew? SLV is, in my eyes, as risky as it gets in PMs. I do not believe JP Morgan will ever go under due to lies about physical silver and vaults and such. But crapola could definitely hit the fan at some point, and SLV would be hung in effigy. SLV bagholders would be left without a cent once the pinata is revealed to hold no actual silver, but just hard candy nibbled on by ants. 

Not looking to re-enter SLV. AAPL traded between 350 and 353. Overall, though, just a slow market waiting for reckoning day.

Spot Silver trading at 47.38. Will Asia send Spot back to 48 and 49? 


See the real deal at Turd Ferguson's blog

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