SLV dud

I’ve been nervous about the market lately, so I thought I could take advantage of the attempted gamma squeeze in SLV to get out of all of my precious metals positions, go to SLV for a day or two, then sell and leave just cash and hedges. So Monday morning I sold all of my precious metals positions, then picked up SLV in the morning and the afternoon.

I had a couple of warnings I should have heeded – especially when someone tweeted a shot of CNBC peddling silver. When they’re pushing trades on any of those major news networks, it generally means some major players want the other side of the trade.

The news about physical shortages might very well be real, but that has little to do with the price of silver futures. The comex extended margin amounts by 18%, and the big players had a field day pushing gold and silver down.

Anyway, I sold all of my SLV at open today and I’m down to cash and hedges. I gave back my AMC gains and a bit more, but it wasn’t too bad considering. After all, if I ignored the SLV trade then I’d be bleeding like crazy from my heavy gold miner positions.

That’s all I have time to say, I need to drive in to work.

About johnonstocks

I've been trading stocks since 2003, active on Motley Fool's discussion boards and using first Hidden Gems, then Global Gains. I no longer have the newsletters, but I keep up on the WSJ and read David Rosenberg everyday at gluskinsheff.com. Education: CFA level 2 candidate MBA-focus in Finance, Marshall, University of Southern California - expected Dec 2010. BS Mechanical Engineering, UC San Diego, June 2002
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