You guys are gonna hate me...trying to catch a falling knife

[cubical]

Oh I agree --- it's a dangerous trade, but so far for the day, very profitable.

I am also now betting directly against you as I have bought some ZSL puts. Hopefully I can do as well as you in time.

 

[Cowlesy]

I am also now betting directly against you as I have bought some ZSL puts. Hopefully I can do as well as you in time.

Hopefully you got a good price on them.

 

[cubical]

Hopefully you got a good price on them.

Probably won't know for a couple of weeks.

 

[Sarge]

Deleted

 

[GunnyFreedom]

I'm very glad that APMEX put in some newfangled security program for CC orders, that wouldn't let me through lol. Have to join some new program... Saved me at least $50 already

 

[Trigonx]

I'm very glad that APMEX put in some newfangled security program for CC orders, that wouldn't let me through lol. Have to join some new program... Saved me at least $50 already

I tried buying a bunch on gainesville coins at like 43.85, but their security program for CC orders shut me out of the deal. Oh well, I guess they wanted me to save money as well.

 

[GunnyFreedom]

I tried buying a bunch on gainesville coins at like 43.85, but their security program for CC orders shut me out of the deal. Oh well, I guess they wanted me to save money as well.

This will sound stupid to some, but sometimes I know someone's watching over me. It's one reason why I picked 3oz Ag for today's moneybomb.

 

[Cowlesy]

I'm going to take a huge risk and hold this ETF (ZSL) overnight. If silver pops overnight I could get today's huge gain wiped out in a blink.

 

[GunnyFreedom]

maybe dropping through $35?

 

[Mike4Freedom]

I'm going to take a huge risk and hold this ETF (ZSL) overnight. If silver pops overnight I could get today's huge gain wiped out in a blink.

Damn, that isa ballsy move. I hope for the sake of your stock and my miners that silver just moves sideways tonight, lol. I did not even log into my portfolio today, too scared to look, haha

 

[Cowlesy]

Ahh looks like I am going to get cut a bit by holding the short overnight as of now.

One thing I've learned in my time doing some pseudo day-trading, is selling when you're hurt in the first 20 minutes is a bad idea.

I'm going to revisit ZSL at noon and see what happened to it. At this point I'm still strongly up on yesterday's trade, but am going to give a nice size chunk of it back this morning.

 

[HOLLYWOOD]

Goldman Sachs shorts silver as price tumbles
http://www.efinancialnews.com/story...hs-shorting-silver?mod=sectionheadlines-PE-AM

Giles Turner
06 May 2011
While gold continues to trade near record highs, the price of silver has tumbled 25% over the last four days, providing good news for Goldman Sachs who have a large position in a short silver ETF.


As the price of silver futures tumble, investors looking to short the commodity have risen dramatically.
According to Will Duff Gordon, senior research analyst at Data Explorers: “There was so much insurance being bought in the options market on 27 April that there were more silver related contracts being struck than those based on the movement of the overall S&P500.”
In other words, investors were more worried about movements in silver, than in the world’s largest equity market.
Goldman Sachs is the largest holder of Proshares UltraShort Silver, an exchange-traded product that increases in prices as silver falls, according to data from Thomson Reuters, taking a $2.7m position in the exchange traded product since January, previously holding just $100,000 in the product.

Funds who lend their assets – a good representation of long-only interest in an asset class – also increased their holdings in the ProShares UltraShort from 200,000 shares in 18 April to 1.55m in 3 May according to Data Explorers, either betting solely against a declining silver price, or hedging existing long-only positions in the commodity.
The second largest holder in the ProShares UltraShort is asset manager Millennium Management, with a $1m position as of Wednesday. Quantitative proprietary trading Jane Street Capital also has a sizeable holding, approximately $400,000.
The short position in silver by Goldman also chimes with their recent closure of a lucrative commodity trade in mid-April – a weighted basket of futures comprising crude oil, copper, cotton/soybeans and platinum long positions.
But it is not all financial wizardry by Goldman Sachs. The firm also owns $58m in iShares Silver Trust as of Wednesday this week. Not as much as Morgan Stanley Smith Barney, which owns $302m across a number of silver exchange traded funds, the highest of any institutional investor.

Other major holders in silver ETFs include Bank of America Merrill Lynch, hedge fund Aletheia Research and Management, and BlackRock Financial Management.
Gordon said: “The Easter rollercoaster in silver helps remind everyone of the massive volatility difference between equity backed funds and commodity ones.”
On a historical footnote, it is worth noting how far silver's standing has fallen since the 19th century when economist Alfred Marshall said: “Civilised countries generally adopt gold or silver or both as money.”
Today, gold has become the legal tender of last resort, soaring in value over global economic fears, whereas silver is a speculative, volatile commodity as the market is fast discovering.

Morgan Stanley Smith Barney was unavailable for comment.
Goldman Sachs declined to comment.

 

[cbc58]

feels like the bottom could drop out of the stock market later today or early next week ...

 

[Cowlesy]

Ahh looks like I am going to get cut a bit by holding the short overnight as of now.

By 'cut a bit' I meant blood violently shooting out of my wrists - Down over 7%!


Edit at 10:28AM: Now down over 10%!
Edit at 10:29AM: Now down over 11%!

 

[swissaustrian]

I dumped my whole shorts 50 Minutes ago. + 223 %!
Maybe we see a double dip but we seem to have a least calmed down a little bit.

 

[Michael P]

I'm guessing we might see a double or triple bottom once the madness ends, I still don't have any desire to go near this with a 10ft stick

 

[Brian4Liberty]

Goldman Sachs shorts silver as price tumbles

While gold continues to trade near record highs, the price of silver has tumbled 25% over the last four days, providing good news for Goldman Sachs who have a large position in a short silver ETF.

...
Other major holders in silver ETFs include Bank of America Merrill Lynch, hedge fund Aletheia Research and Management, and BlackRock Financial Management.
...
Morgan Stanley Smith Barney was unavailable for comment.
Goldman Sachs declined to comment.

Shocking! You mean that the Wall St. "Banks" are really speculators?

 

[Brian4Liberty]

We have settled into a holding pattern at the moment... the rebound has fizzled.

 

[Cowlesy]

We have settled into a holding pattern at the moment... the rebound has fizzled.

It had the feeling of some real players saying, "Let's see if we can shake lose shorts who put on their trades yesterday, then at noon let's close out the attempt to push it higher, eat lunch, and come back and get on the short train."

 

[Brian4Liberty]

It had the feeling of some real players saying, "Let's see if we can shake lose shorts who put on their trades yesterday, then at noon let's close out the attempt to push it higher, eat lunch, and come back and get on the short train."

We also may have had a lot of bargain seekers putting in orders, and they have all been filled now. I couldn't even enter an order yesterday afternoon on TD Ameritrade's website, it was overloaded. I was wondering at the time if people were putting in buy or sell orders...