Market Curiosity: Exploring Markets And Systems

February 5, 2011

Long SLW and won’t trade out unless something significant arises -2%

Filed under: -05 to -24%, Long Calls — Tags: — Jeff Fitzmyers @ 6:31 pm

Long June 36 calls at 3.55.

– Could have a pullback to the 34 EMA, but it should be short lived.

References:
+ Silver shortages and backwardation update
+ Long SLW, again part 2: How to overtrade and reap -10% while long in a bull market
+ Why I prefer SLW to CDE, HL, PAAS, SSRI and silver

Feb 9: Sold for 3.48 -2%. I’m under the weather so my judgement is questionable. Taking a cautionary stance.
– Silver was up more percentage wise yesterday than SLW. I could argue that “this time it’s different” and metal is leading the stocks with all the reported shortages.
– Silver is rather far above it’s ema’s right now so susceptible to a short term decline.
– SLW could easily drop to 33.50.

I would rather step aside than sit through a significant correction. Reentry is if SLW starts making new highs, or drops to at least 34 (the 34 ema on the 60 min chart). Expecting a day or 2 of not going higher. Kept the core position.

TCK is what I’m talking about. 2 warning signs:
– Yesterday’s bar would have been more bullish if it closed higher.
– Lack of volume the past 2 days.
– Well, the weekly high was > 70 too.
But otherwise, if I was long, I would have not been too concerned, until the options dropped -40% in one day.

1 Comment »

  1. Lol had to create a wordpress.. Enjoy your post. And ive been long svm, and slv. Gl with slw good analysis you posted keep up the good work.

    Comment by enron89 — February 5, 2011 @ 7:04 pm


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