The markets have fallen hard intraday, t…

The markets have fallen hard intraday, though it’s not a full 2% intraday swing and thus doesn’t meet the worrisome “dislocation” threshold.  Regardless, the green on our sheets from this morning has mostly faded to red, though our SLV puts are now more profitable than ever after today’s 7% collapse in silver.  Silver’s playing out just about like I’d said I thought it would last Thursday night, when I wrote:

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.

Holding my SLV and GLD puts steady for now.  A little more weakness in some of our smaller positions and I’ll probably start nibbling on some common stock to continue the steady-as-she building process of my portfolio as I build it back up after three years of not trading.  Let’s do this!