The broader markets are suffering today,…

The broader markets are suffering today, but that’s not the case for our own portfolio as we enter the contra-hour.  The 11% intraday drop in silver and 3.5% intraday drop in gold (and oil) declines are rather stunning in their magnitude, and I will be frank in telling you that while I thought and wrote that we could get some 10% intraday declines in this trade, I didn’t expect to see these trades work out so incredibly profitably in 48 hours.   Better to be lucky than good and there’s definitely luck involved anytime you catch a dream trade with this kind of dream timing on the trade.

I don’t want to be a day-trader and I expect gold and silver will be headed quite a bit lower than these levels in coming months so I’m sticking with my short common and long put option positions in GLD and SLV for now.   But feet to fire, I would expect that silver and gold will both have some “dislocations” to the upside in coming days.  Silver, after losing 25% in five days, is likely to spike at some point.  I’m not going to try to time it so neatly, but for what it’s worth, a 3% or more rally in silver tomorrow or Monday wouldn’t shock me.