Finish Them Off – Bought SLV

The entire silver space is being routed as new regulations flush out hapless traders like well trained hounds.

On the back of this sell off, I’ve decided to deploy my entire cash position, buying up SLV for $38.97 a share. In my estimation, such a rarity as a forced liquidation of an entire sector is a moderately rare thing. The new margin requirement rules that got this sell off started have done marvels, forcing the price of silver temporarily down by almost 20% inside of three days.

The initial wave of selling (professionals who were using margin to capitalize on higher silver prices) has now been exacerbated by the second wave of selling (the weak kneed, soft handed, followers and casual side traders) as they all overlook the fact that this sell off is basically being mandated. I’m sure the people who were forced to sell initially would have rather held onto their positions than be required to sell them regardless of the presence of sufficient buyers.

So now is probably the time to start deploying cash, as it is definitely a buyer’s market. Quite literally, no offer will be refused, until the artificial excess capacity is all absorbed and we can get back to silver over $40 an ounce.

Now is not the time to press a blade to the silver market’s necks. Please, stop being silly, by getting in the way of such a beast as the silver bull. If you’ve nailed this trade, congratulations: take your cash and be happy.

Now is rather the time to hunt down the small, scared animals that have been chased out of the bush.

Using up my cash, as I have, and in lieu of other disturbing scents and sights this week, I’ve decided to raise more cash in short order. Another 5-10% should do it, just fine. I also will attempt to take easy profits on the SLV trade, rather than chasing it back up to $50. That should leave me with a nice 15-20% cash position in my accounts, while still holding full, if slightly diminished, positions in MGM, AEC, CLP, AWK, BG, and CCJ (not counting my holdings of physical silver of course), if all goes well.

Happy hunting to you, from the 9th floor.