If you do short it, nibble in and only add if the chart weakens. It's a runaway train right now. Shorts can get run over.
Printable View
SLV is up 100% since I bought it. I am happy with that.
I just can't pull the trigger on this one, it scares me. Could an investment in ZSL go to zero if you hold it long enough and if the market keeps rising? How long can one sit in the fund without locking in losses before fees and churning costs of the underlying paper in the fund start to seriously erode the original investment?
Would the things that might strengthen the US dollar tend to drag on the price of silver and cause ZSL to make money?
Say like, an FED statement indicating strengthing the dollar instead of debasing it? Or a rise in interest rates that dampen economic recovery and less demand for metals? Or if legislators get serious about tightening up the federal budget? Or the hot trend crowd starts chasing real estate instead? Those things would be good for ZSL right?
How fast does it move? Should you check on it every week? Day? Hourly? I would have to set stops because I don't trade during the day job, and I'm sure I don't know enough about the technicals to set logical smart ones. I usually place day-only orders set at prices that look good to me in the general percent range I'm comfortable selling for profit or getting in at, like 29.99, or 26.25 or stuff like that.
OK, I just couldn't resist any longer, bought a block of ZSL at $15.09. The only way I learn is by doing. But I'd be glad for any analysis or play by play you might have.
I plan on getting out in two stages so the extra trading fees will take a bite, It's going to have to move big to be worthwhile.
Good luck burro! I would think $50 will be a tough nut to crack. It may break it on the way up, but you'd suspect there will be profit takers at that level - at least temporarily. Who knows, though? These freight trains can be tough to stop.
Good luck you silverados. I bought SLW (typically leveraged to silver) after saw a fair value analysis that said I was getting in at fair price. plus the CEO said he wasn't going to hedge til silver hit 50.
SLW has been in a slump since I bought while SLV continues screaming upward. great, just great. and once silver hits 50, CEO plans to initiate hedge position. hmm. time to do another fair value analysis-I kept the article to remind me how to do that. gotta find it now.
Wow, down $0.80 a share in about an hour, these short funds are kind of like speed dating, you find out real quick whether or not you're going to get screwed.
Ouch.
Well, if I ever get bored, now I know what to do.
Just buy a leveraged short ETF and watch it go.
I think there is probably a real big chance I am on the wrong side of the ZSL trade, and I typically hate being a don't bettor, but this could break powerfully I think, and if it goes my way it's going to be a good one.
You're right... you could make out like a bandit. I am holding AGQ until I think it is time to jump ship (ZSL). Silver is a huge unknown right now-could do anything.
Which would mean I am basically gambling... Let's just say I have my chips on Black!
Not only are you in a leveraged fund, but you are dealing with the hottest commodity in the market right now. Many people will have many different opinions about what will happen to it... I am just betting that the upside will continue until June.
In June I sell (AGQ), and try and time a ZSL buy.
I think I get it, silver isn't a commodity play right now, it's a currency thing. Man, I hope this bubble pops.
Yes, its a currency play right now, and I wish I'd bought back at 11 when Showme was talking about it lots. Pullback is likely to be a fakeout tho and start zooming up again.
something worth reading. don't know if things will go this way or not. but somethng to think about. C-fund and I fund implications. not sure about S.
I'm looking for a pullback to 37-40 - enough of a scare for the big boys to get rid of us little guys. A 400% gain is parabolic and when these finally pull back, they can be scary. Whether it happens now or over the summer, look for a sharp pullback that should be able to be bought once the 50-day EMA is tested.
http://www.etftalk.com/images/forum/slv1.gif
Just realized I forgot to link the article I referenced up above-here it is.
http://www.financialsense.com/contri...-end-paradoxes
Silver's getting hammered in overnight trading.
I sold two of my positions last week for a good profit. I had trailing stops in for my other two positions. I put in cancellations for those stops to occur at the opening bell because I didn't want to sell at a loss. But one of my stops hit before the cancellations went through. Sold at a profit of just a couple of cents. Still holding one position of SLV and will buy CEF at these fire sale prices.
My plan to keep AGQ through the end of May is still on.
I don't think the fundementals have changed... Until US interest rates begin to rise it is hard to see the dollar moving to a longer-term strengthening trend.
As I mentioned in my account talk thread, I covered my short silver trade (ZSL) and now I am eyeballing a place to buy silver (probably SLV and not AGQ).
I think 37.50 may be a decent place to enter. I would doubt that it would test the 200-day EMA on the first pullback.
http://www.etftalk.com/images/forum/slv2.gif
Looks like SLV will gap open below 37. I'm taking off my open order to see how it plays out. The dollar is up this morning and silver won't like that. Perhaps waiting for the dollar to have it's bounce first would be wise.
Anything's wiser than what I think.
EDIT: Fortunately, I didn't have much money in AGQ to begin with!!! And at least TNA might not be negative today.