Beaten, bludgeoned, and swallowed by an African Rock Python (only to be regurgitated, and then beaten again), I stand before you gob-smacked and riven. I’ve been selling off in drips and drabs this week, in anticipation of a pullback in the gold market, and a lesser refrain in the silvers. I guess I should feel relieved I got rid of some exceptionally over-weighted positions in some super-volatiles like AAU and AG.
I had even sold some RGLD yesterday — ever so reluctantly. It’s a testament to the kind of day I had when my losses in RGLD were some of the lowest of the day at a mere 4.54%. Many of my juniors were in the 10%+ loss range, with my beloved EXK leading the pack of ass-biters at a loss of over 14% by day’s end. In the end, I guess I feel a bit lucky that — thanks to my increased cash proportions and my tiny hedges on SLW — I only lost a tad more than 7% for the day.
But let’s not kid ourselves, this was a shock and a murder, and I left myself vulnerable when I should have been hedging. I know now that when my “Spider Senses” are tingling enough to make me want to cut back on some heavier positions, I should take that cue to hedge out more of the portfolio at the same time with at least sold calls.
Looking at the longer term charts in gold and silver it’s still difficult to say whether or not we are going to feel the great sucking sound again on the miners or whether we will bounce out of this dreadful day. In some cases — RGLD for instance — we haven’t even filled gaps yet from earlier in this week. What’s more, it looked like it could consolidate at these mid 60’s levels for a bit longer.
As for yesterday’s purchases, they were all unmitigated disasters — especially BWA — the Borg. I’d thought I was a bit early there, and sure ‘n hell if I wasn’t. I was down well over 7% in that “toe dip” position, so I thank Jupiter’s Stone that I “went small” in the initial buy. UPS was also down a bit over 3%, but I think the franchise name held that company up today.
Bollinger Crash Trade candidates were all over the decking today, but I think the tastiest may be the Emerging Market i-Shares play, EEM, whose twin, VWO, was the largest “buying on weakness” name today, according to the Wall Street Journal. I believe I shall be taking advantage of that one tomorrow, for the pop play.
Off to go drown my sorrows in a half gallon jug of Hugh Hendry Blue Label Gin & Jooce (sic).
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