All things Silver and Gold

Seeing silver rebound this morning makes it a little frustrating to have been stopped out yesterday – but I know it’s all part of the game we play. Never should the thought of more upside make you violate your trading plan- thats gambling not trading – especially given that the price action in silver was murderous yesterday afternoon. All in all I am still unsure if we are going up or if this is a rebound to yesterday afternoon’s sharp selloff.

I still believe the trend in the PM’s is up – dollar weakness, flight to safety and middle eastern dictators/oligarchs looking to stash their loot all support this thesis. I will take this opportunity to look for points to load up on longer out calls on some of my favorite names: SLW, EXK, ABX and SLV. I want to nibble today – I am uncomfortable starting a large new position on friday, but on a balance of probabilities, any news that occurs (another middle east revolution perhaps or QE3 announcement) should be beneficial or at least ambivalent for the PMs.

Going with this theme, I just added some SLW June 35 calls at 7.15 – its a half position but I feel much more comfortable because I have rolled my calls forward.

Finally, here is the graph of HUI from yesterday I have been working daily to help me gauge the direction of the miners, which seems to be confirming my theory this morning.




One Response to All things Silver and Gold

  1. Britt says:

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