Looks like this is short term over bought.
Long term I'm very bullish on silver, but the traders are in charge of short term prices and they are going to take this back down.
N. Korea will fade into the background here as their sabre rattling is seen for what it is. Oil is pulling back from a strong run. The EU is going to raise or at least talk about raising rates.
Japan is set to raise rates for the first time in a very long while - a significant move.
I'm not a basher, just giving my opinion and trading off the volitility. I have nothing against long term buy and hold, just not my style, but I do hold small cap silver stocks.
The last time I shorted this it was just off its all time high in March - could be wrong this time, but I don't think so.
Good luck all.
midas murphy on silver 2 nite
"The gold open interest rose 3802 contracts to 296,302, while the silver open interest fell 599 contracts to 97,275. This declining silver open interest is extraordinary and seems to be setting the stage for some serious upside fireworks.
Our STALKER source called and said there is silver action coming out of Dubai, with buying coming in at the $10.49 level. He also said these folks are looking for silver to head towards $20 in short order."
I for one will never bash facts or even opinion based on facts. As you may have noted in our exchanges I always respect your view. even if I disagree with it. I do not fault shorts for taking a chance with their money. After all it is their money and how they wish to use it is their choice. I do however fault those that "lend" shares out to be shorted as it goes against the owners of those shares. However the rules of the game are there for all to use.
I do get steamed when occasional posters come here only to bash the stock and pretend their last bout of postings never happened and when they are called on it they cry foul. Pumpers and bashers are two sides of the same coin and neither serves any purpose IMO.
Lets just keep it to facts and interpretations of the market and leave out the hyperbole and BS. As you are able to do along with most of the rest of us on here. Of course I will take basher arguing any day over OT nonsense cluttering up the board.
I just would add that in todays heated geopolitical environment it seems shorting PM shares is risky. The risk / reward was heavily on the side of reward a couple weeks ago when the miners were hitting the lows about 30% or more from their highs. Now it seems about even from a math perspective and the charts are faltering although still show some signs of strength.
I have heard the argument that any stock you would not buy today is a sell and have never agreed with it. That has worked for me. To each his / her own.
I never bashed you. Get over it. All I did was recall the facts in the case based on your previous posts. Could you please direct us all, or at least me, to any type of BS I made up about you. SLW never went to $12 for the record . It's highest close ever was under $11.70 I believe. The reason it takes balls and a friendly broker to hold a short for weeks or months is not a case of the short being in the money or even it is when the short is underwater. As yours was back when you first posted about it. How long one can hold an out of the money short takes balls and the ability to go deep (or not so deep depending) into the red as you stated. At one point you were over $10k in the red so to me that takes balls (or stupidity I suppose but that is not my call to make much like you believe anyone who held SLW from May till now is stupid). Of course what about all those that said at $9 it was doomed? Or those that said it at $10? Truth is SLW is a solid company that has expanded its silver sales every quarter since inception and shall continue to. No matter how hard you think it is a middleman with no ability to grow the facts dispute your assertions. The silver miners that sell to SLW get buckets of much needed cash upfront for selling the future silver at a lower price. You are right SLW is a silver hedger similar to bankers. Only they are on the right side of the hedge not the wrong. In addition most of the silver streams they buy are from companies NOT IN THE SILVER business but rather extract silver as a by-product of the resource they are after. But you are a smart guy you probably new all that already but it won't fit your bashing.
Lets just leave it that I am without any knowledge and your past posts should not be taken as any indication of your actual trades.
Thank you for the chance to exchange ideas with such a brilliant mind.
I have no problem with shorts as long as they don't disseminate false information. Currently I'm out of most of my PM positions as I do believe we're at a short term top. If I'm wrong, so be it. I'm still up a bunch this year. The market right now looks very weak. I was expecting a much bigger rally after that presumably last rate hike rally last Thursday. The high-tech generals such as INTC & MSFT are near 52-week lows and the homebuilders are not even participating in the recent rally (not even a decent bounce?). On top of that HUI slipped below the recent uptrend line in the latest correction and that looks pretty bearish to me. The longs would bash me for saying this but I do think the risk is to the downside. HUI back to 250 I'm afraid.
What theory, that is what slw does.
They buy silver real cheap and sell it at full price - simple. GG spawned them by spining them off to create value for their silver holdings.
They forward pay for silver production from mines that want to hedge silver, that is why they get it cheap.
Stupid is thinking this is a sustainable model in a time of rising silver prices.