SLV - Silver ETF & Silver Futures - SI - Page 157

I have got a lift now. I am still holding a few next weekly calls bought by mistake. and hold by force. .

I'm holding few Oct 35 calls. Bought this morning - already down more than 30% percent       

 

Will wait and see how things shape up next week before taking the losses.

wow, how nice. thank you dollar.

 

That was pretty bad, now I remember why I haven't played with options in a while.  At EOD I bought an Oct strangle so hopefully it moves hard one way or the other preferably up. 

Not to mention AGQ guys. The 2X ETF proxy for Silver was down over 28% today, at one point probably down about 34-36%. To give a feel for the enormous power of leveraged ETF decay during periods of high volatility, consider this. Imagine if on Monday Silver snaps back to recoup precisely the entire loss from today, obviously AGQ should rise just about 28% (you have to allow wiggle room due to issues with I think the NAV adjusting over time), let's assume the gain is exactly the same as the loss today. Well, $118.64 x 1.2814 (28.14% gain) brings AGQ to about $152.03. But AGQ finished Thursday at $165.10, meaning that amazing volatility would cost AGQ holders $13.07, or about 7.9%, just for two days of sideways action. That's expensive!

Can`t believe how easily silver cut through all its support. Going to 25 at some point. Deflation kicking in to high gear.

I exited with a 5% loss today on them SLV shares and calls I was expecting a bounce of some sort but that just did not happen. Did not play out well for me with Silver today There were definitely some big invisible hands that pressured this MTF down today.

 

Don't feel too bad. You are not alone with today's losses. I lost quite a bit with Silver today. Sorry to hear about your losses as well.

someone knew this was coming beforehand ...

 

http://online.wsj.com/article/SB10001424053111903791504576589221715678498.html

 

at least now we know the reason for this huge drop .. IMO a great buying opp longterm

 

"Gold margins will be raised by 21%, silver margins by 16%, and copper margins by 18%, effective at the close of trading Monday, CME said in an email after trading closed Friday."

i expect a 25-27 consolidation before it moves back up. Even though gold made new highs previously, this didnt and only mustered the strength to stay range bound. gives an idea of the demand.

Its very clear the big guys knew about this early but everyone just found out about it.  I agree with MJOKE that this settles around the 25-26 range within a week or two, because what incentive is there for the big guys to step in and buy now... everyone else who didn't know will be selling into next week and it seems only logical that they would wait until after all that selling is done so they buy back in as low as possible.  Silver and Gold both have some normalizing to do after this massive smack down... then it can begin to recover in a few weeks.  JMO

The whole action Friday screamed institutional dumping. Likely they were dumping the last few days. That last drop caught alot of people. I think it will likely take a bit of time to settle like it did in April when they purposely played around with the price with those margin calls.

 

With all the currency craziness I can see people looking at the precious metals as a safe haven that has not come back down in a firesale. I have not see too many calling this a bubble like they have either since the stockmarket "bubble" got hit at the same time.

 

Time will tell.

how will the US will escape this debt problem without printing more money? i dont think they can. And you know what printing money does to gold/silver...

 

if anything I see this sell off in precious metals as a signal for the feds to print more money. Remember its extremely difficult for them to do more QE (or print more money) while gold and silver are at record high prices (as many people see gold/silver price as an inflation tracker). With that said, I would be extremely careful to go long here unless a catalyst comes along...

While that sounds logical, it flies in the face of reality. Both GLD and SLV gained 1% AFTER the margin hike news was made public. It is more likely that GLD and SLV gain on Monday, MACD is giving a buy signal and historical volume patterns strongly suggest of a recovery in the next week and after hours action on Friday confirms it. Moreover, I have seen some gold cult websites that are spreading possible Greece default news as a positive for Gold as people have more reasons to dump currencies. It looks like regardless of good or bad news from Europe, gold and silver are poised to climb. JMO

 

As a consequence of this, if GLD gains, it means dollar loses, which means markets would climb, and hence I am bullish on the market as well for Monday. I could be wrong but the probability is pretty low. Lets see.
 

 

My inner conviction tells me that this will be like April.

That was spectacular Thurs - Fri. I frequent a website for firearms, shooting sports and survival related things for folks with homes in the Carolinas.. Anyway these guys think they can eat silver and gold and are all convinced silver will be worth hundreds of dollars an ounce any week. To say the least they are straight up tripping right now. Name calling, crying, jumping out of windows, I told you so's, it'll be worth $50 by next Fri, it's a conspiracy, Obama's fault and so on and so on. It is fantastic reading. I'm gonna watch Monday go out of character and try to play a funny money bounce next week. This is exciting.

I read an article last week that said you're gut instinct has merit. I wish I could find it. That said I don't know what happened in April. Welcome to the HSM asylum.

I think banks dumped a huge position in Gold and Silver. Notice how Bank shares climbed as Gold and Silver tanked. Pretty sure Banks needed cash so they dumped. I see Bank shares climbing on Monday and more down side now to Silver as the major resistance at $32 was broken.

LOL well, in the 20+ years i have been tracking metals and commodities , that was the biggest takedown in 2 days on nearly any commodity , the 25% drop in silver. Anyone who believes this is a supply/demand issue affecting the price needs to have their head examined. Central banks and hedge funds in europe, got some warning in advance that  another margin increase was in the works, and took this opportunity to  dump and short silver. Open interest on the comex did not signal any big move in silver in the report preceding the takedown. The selloff began on the LME and picked up steam on the CRIMEX.

This did appear as tho stops were hit hard , and of course that exaggerated the selloff.  Lets see what ASIA does tonite, i suspect they will believe this a huge buying opportunity. THERE physical buying of gold and silver is huge, and part of the culture. IN Europe and North America, very few even believe silver and gold worth buying. 

I am hoping silver does drop under the 30$ US price, and will be loading up some physical, real coins and bars. I dont believe SLV is a safe vehicle for buying silver. Just my distrust of JPM as the custodian of SLV's silver. JPM still the biggest short on silver , and this really is the fox guarding the henhouse.