SLV (and GDX)

I realize that the silver/gold ratio is yet to reach traditional levels, but last week's move sure looked like a blow-off to me that would retrace and possibly churn for awhile. I lightened my GDX position on Wednesday a bit early it seems. The action on Thursday and Friday did make me think that another stab or two at new highs was more likely than it was on Wednesday. An impressive move. Weekly bars, btw.

 

When something breaks out to all time highs, there is no so-called overhead resistance.

 

I realize that, but I'm sure you've seen plenty of moves go parabolic without overhead resistance and then sell off hard, and churn around before eventually continuing higher. It's one of the most surefire ways I know of to sell and buy back in at lower prices. While no wager is ever a certainty, and picking THE top is rarely achievable, the most disappointing aspect about this type of price action, if you ask me, is that it doesn't happen more often.

Having said that, I am disappointed that I didn't wait a few days to try it this time ;<().

 

I think a vaccine would knock gold and silver down a quick 20%-25%, but until then its still off to the races.

 

Good advice. Do you think they'll announce it during retail hours?

 

I don't see that happening. A vaccine won't knock 20% - 25% off the national debt or Fed balance sheet.

 

Yup Gold/Silver going up is a hedge for many against the indexes dropping 20-25% or more.

And as far a reliable effective vaccine coming along I'd think it would be sell on the news for indexes. Not so much Gold/Silver.

But who knows.

 

Bought 100 shares of SLV today. I already own 300 shares...Have done options (covered calls) on the the 13s, 14s, and 16s, Jan 21 I think. I haven't looked closely. Silver has sat there for years. I would write covered calls to gain income. They are in my Roth IRA so the call money is tax free. Just hated to see myself not being in SLV next year.

I bought SLV at $22.53 today. Then did a covered call for June 21, at $24. I got $3.80 ($380.) for my option money. If it drops 20-25% I am fine with it. I don't mind having my options all over the place. With the government printing money and the dollar not being the safe haven it use to be, it is good to have some extra money in silver. Just me...

 

I'm down to 25% of my original stake in GDX after selling 50% last Wednesday and 25% yesterday. Still looking to get back in at lower prices, but the only characteristic of a SLV blowoff so far is on the upside.

 

Oops! Looks like the silver train's leaving the station without most of my load.