SLV has traded nearly 3x its outstanding shares in the last 6 trading days
cohodk
Posts: 19,102 ✭✭✭✭✭
Incredible volatility in SLV over the past 6 trading trading. Over $40 billion dollars of SLV has traded hands in the last week. Today is going to be another whopper of a high volume day. I mentioned last week the importance of studying price and volume charts.
Excuses are tools of the ignorant
Knowledge is the enemy of fear
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Fellas, leave the tight pants to the ladies. If I can count the coins in your pockets you better use them to call a tailor. Stay thirsty my friends......
<< <i>I thought the ETF's were created as a simplified buy and hold vehicle. Has this venue become just a wild west unregulated futures market? >>
"Buy and hold" is a psychological mindset.
Silver has become an "internet stock" and will continue to trade as such.
Knowledge is the enemy of fear
Can you buy it on margin, or do you have to pay 100% up front?
If there is a margin requirement, is it now significantly cheaper than CME? Could that be why so much volume has shifted to the ETF's?
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J6P knows nothing of futures contracts so he trades etfs. Many funds would also rather trade etfs over futures. The volume is a direct result of the increased visibility of silver. The more volatile something becomes, the more attractive it is as a trade.
Many people think of silver as a hard asset that should be held forever, but there are many, many more who view it as just another asset and treat it as such.
Knowledge is the enemy of fear
If there is a margin requirement, is it now significantly cheaper than CME? Could that be why so much volume has shifted to the ETF's? >>>
The Fed margin requirement on SLV is 50%, however at my firm our house requirement is 30%.
Edited to add:
india deck linky
<< <i>The India bullion desk is reporting that the CME has just raised margin requirements on silver for the third time in a week. Can anyone confirm that, or when it takes erffect?
Edited to add:
india deck linky >>
Yes it's true, 3 times in just over a week. The changes typically take effect the following trading day I think.
The CME’s initial margin requirements will increase to $16,200 per futures contract, up from $14,513, and maintenance margins were increased to $12,000 from $10,750.
JPM is desperate to kill the silver surge. They are doing the same on Comex which has seen volume in multiples of open interest the last week.
The day traders are backing off but the bullion holders aren't falling for it. Very little for saie at these prices.
Coyn
<< <i>This is front running manipulation. They flash trade with themselves as the short and the long and run the price down. They can decrease the price but have little risk as they own both ends of the trade.
JPM is desperate to kill the silver surge. They are doing the same on Comex which has seen volume in multiples of open interest the last week.
The day traders are backing off but the bullion holders aren't falling for it. Very little for saie at these prices.
Coyn >>
Perhaps JPM just let the price run higher to suck in the sheeple? I've seen this game played 100s of times.
Knowledge is the enemy of fear
To wit:
So what do you advise an investor who wants to diversify his portfolio by buying and holding silver without actually purchasing the commodity, but who doesn't want to buy something that is heavily leveraged or much more volatile than the underlying asset itself?
This is exactly the point. JPM wants people not to be in physical. JPM doesn't want anyone to have any recourse when the next $5.00 or $10.00 drop comes out of nowhere. Besides that, Goldman Sachs wants to flash trade you out of existance. Most newbies getting into silver at this point have no idea what they are getting into.
Know anyone that sold right before that drop and avoided getting hammered? Prolly not.
I knew it would happen.
<< <i> buying and holding silver without actually purchasing the commodity >>
Then you are just betting on the price swing which means its only as good as the willingness of the loser to pay. Of course the big banks would never claim "force majore" and not pay. They are too honest for that.
If you don't own physical then you only own promises.
<< <i>Perhaps JPM just let the price run higher to suck in the sheeple? I've seen this game played 100s of times.
To wit:
So what do you advise an investor who wants to diversify his portfolio by buying and holding silver without actually purchasing the commodity, but who doesn't want to buy something that is heavily leveraged or much more volatile than the underlying asset itself?
This is exactly the point. JPM wants people not to be in physical. JPM doesn't want anyone to have any recourse when the next $5.00 or $10.00 drop comes out of nowhere. Besides that, Goldman Sachs wants to flash trade you out of existance. Most newbies getting into silver at this point have no idea what they are getting into.
Know anyone that sold right before that drop and avoided getting hammered? Prolly not. >>
I didnt sell right at the top, but I did get short.
With all due respect, I dont think JPM gives a rats rear end if people own silver--physical or otherwise.
218 million shares traded today. That probably marks some sort of (very) short term bottom. SLV closed under the 20dma. Usually this projects to the 50dma or lower Bollinger band---both in the 36-37 range.
Knowledge is the enemy of fear
<< <i>So what do you advise an investor who wants to diversify his portfolio by buying and holding silver without actually purchasing the commodity, but who doesn't want to buy something that is heavily leveraged or much more volatile than the underlying asset itself? >>
There are several ETFs and closed-end-funds. SLV, PSIL, CEF are some of the popular ones for silver, CEF has both gold and silver. GTU, PHYS, GLD, IAU for gold. Each has pluses and minuses.
For the typically small fish long term stacker, physical is the best way to go. For retirement accounts, and for short term trading, the ETFs may be appropriate.
The double and triple leveraged products are more for speculation and day trading.
You da' man! (Don't let it go to yer head).
With all due respect, I dont think JPM gives a rats rear end if people own silver--physical or otherwise.
In one sense, I agree - but I do think that JPM does care what the "market" does. They're milking it. Clipping it. Skimming it. Call it what you want.
And they'd rather have folks coming into the more liquid and easily-tradable paper vehicles, especially the leveraged ones. Note the thread started by MrBear. They want an emotional response on the other side of their trades.
Not everyone trades as adeptly as the cohodk.
I knew it would happen.
Good to trade the ETFs.
Bad to "hold" the ETFs.
<< <i>I didnt sell right at the top, but I did get short.
You da' man! (Don't let it go to yer head).
With all due respect, I dont think JPM gives a rats rear end if people own silver--physical or otherwise.
In one sense, I agree - but I do think that JPM does care what the "market" does. They're milking it. Clipping it. Skimming it. Call it what you want.
And they'd rather have folks coming into the more liquid and easily-tradable paper vehicles, especially the leveraged ones. Note the thread started by MrBear. They want an emotional response on the other side of their trades.
Not everyone trades as adeptly as the cohodk.
Thanks, but im really not that good. I dont have the nads to go big like derryb or PC, im just slow and steady.
The big banks surely "skim" the markets and do care what they do. Its their business. I sincerely doubt however that there is a conspiracy to fleece the sheeple of all their wool.
I think you would be surprised to find that even JPM and GS are amazed at the price levels many assets go to. Trading is really all about emotion as you correctly mention. And even though people tend to act in similar manner to events, the degree of their actions is often underestimated.
Knowledge is the enemy of fear