... and seems to fit very neatly into the file. SLW had its 5 days up as well as a nice bounce off it's 20DMA. It hit the top BB yesterday and could have stayed there for a bit or even stretched higher before correcting but it didn't. The PM's got hammered today as EVERYONE that follows these things knew they would sooner or later. Silvers TA will be repaired to more realistic level after this. SLW is right around its 20DMA again and that has risen buy almost a buck ( $.80) since last it was there just a couple of trading days ago. RSI is now closing in on 50 which makes me smile. MACD was unable to go positive on the last upswing but was about even. It has turned down today as would be expected. All in all no real surprises here. April and may are always tough months for PM stocks and this year it seems will be no exception. Let's see where we go from here. Does SLW and silver turn bearish or does it just correct to the usual support levels. This is a good lesson for those learning to ride a PM bull. It will give you ulcers ( not really since ulcers are a bacteria) if you can't stomach the moves. Better to not get too euphoric on up moves and then you wont get too despondent on the down moves. This is another good reason why not to trade in and out of a PM bull. The moves are sudden and sharp. FWIW most shorts are barely above water so far so do not think they will back off any time soon. Especially if they smell blood in the water. Good luck all and hang tight. For those that are calling for single digits and low single digits at that are either delusional or kidding. SLW would need to break under its 50DMA to go below mid $9 and as I have pointed out before SLW HAS NEVER GONE BELOW ITS 50DMA EVER!
As stated you saw it coming. Actually we all knew it was coming, it was just a matter of when. Personally I am not at all discouraged about the long term prospects of this play. And the corrections are simply buying opportunities. Cheers and please keep the analysis coming for all to read. The shorts have had their day.
My guess is many of the supposed shorts on here either covered before this since they were deep underwater or they added to their short and it will be about a break even. I am not a fan of going short but that is my position. If shorts have success that only comes at the expense of weak hands that sell too soon. The Pm bull is so very far from being over and SLW is so far from where it will ultimately go. Perhaps the shorts and the short term traders just keep passing the same money back and forth to each other? Matters not to me since I do not use short position data to judge my holding of any company ever. I go by the companies fundamentals. A lesson I learned well in the '90's. For the record let me add when I play craps if someone has not made a pass in 4 or 5 rolls of the dice I will "quietly" put down $25 on "any seven" that will pay 5 for 1. I do it quietly since it is a bet against the shooter and not a popular move. I never root for a 7 it is just insurance to cover all my other bets on the table including my main position on the pass line. Stock shorters that inhabit the boards or pay others to are anything but polite and quiet.
...in addition to SLW CEO's comments about pullback, this may actually help the startup of the ETF. IF it's going to happen, now is the time to buy the silver one would need. I'd hate to be left on the sidelines if there is an announcement made regarding this.