And Whoosh

Tyler Durden's picture

As we suggested earlier, there would be virtually no trading volume at all today, and any moves would be driven purely by the deltas. And following the close the fireworks would follows. Sure enough, here's the whoosh immediately following the start of the AH session.

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curbyourrisk's picture

Thank you sir....may I have another!

AR15AU's picture

I went long SRS at $19.90 just before the close. I thought I was seeing things after hours. Thank you zero hedge for the story about the QE2 failure / banks being forced into Treasuries.  It looks to me like IYR is slightly ahead of the market and will be leading the plunge.

Iam Rich's picture

I've had my eye there also (IYR), since it broke down from the gigantanormous rising wedge about a month ago.  Can't seem to get it's feet.  Tempted to SRS but am liking silver a little more atm.

Mr Lennon Hendrix's picture

WTF?  'The market' took SLW down, and silver had a great day!  And if I was going to guess, well, that really helped any Asian silver buyers.  :)

NumberNone's picture

Just posted this...look at AKAM also.  No such thing as market manipulation.??

What a bunch of shit.



Mr Lennon Hendrix's picture

President's Working Group on Financial Markets were in full effect all day today.

NumberNone's picture

Looks more like the handywork of the Expiration Action Team-Market Experts aka EAT-ME. 

I may be mistaken but I swear that I heard someone on a trading desk say that "If anyone has a problem with what we did they can take it up with the SEC and EAT-ME"...or something to that effect. 

Logans_Run's picture

Or it could have been the Random Action Manipulation and Experts Mongers, aka RAM'EM

cosmictrainwreck's picture

"least worst" is Hecla = HL, and I think best up-side; SLW over-priced (imo). HL pretty much tracks AGQ, with sling-shot on the up-moves, as you'd expect with any stock; leave the down-sides open to speculation.....

Flakmeister's picture

HL is nice stock... A solid buy-and-hold is their B preferreds, yield about 6% and they have a mandatory conversion. Made an absolute fucking killing on the C class preferreds that convert Jan 1, 2011. In at 58, now at 102, will convert to ~10 shares each and picked up two 1.87 dividends...

Impact Silver IPT.TO is a very nice and quiet silver miner, trades thinly on the pinks here though. Excellent properties. SLX.TO has the potential to be a monster based on their known resource base.

A real speculative play is KS.TO, amassing some very nice properties (1400 g/T Ag) in the Yukon. Same management  that made Placer Dome into a monster. Ask an old rock hound about Placer....

A new listing on the NYSE, AG, is interesting play, pricey, vertically integrated, you can buy silver rounds at their website. If they do a secondary, it may be worth nibbling.

GoinFawr's picture

Check the PE on those, I think you might discover that some are more 'pricey' than others.


Flakmeister's picture

   Yes, but PE is the last indicator you look at. Resource base, production, cost per oz, hedging, debt, political risk.  At some level E matters. SLW is rich, it will pull back, looking to accumalate in the low 30s... Or buy now and sell a Jan 12 45 call to go with it.

GoinFawr's picture

All appreciated, but be careful not to confuse  banks that like to call themselves 'silver producers' with actual  mining companies that have their focus on Ag; that's a pretty small club. JMHO


Flakmeister's picture

  No argument here... remember the old adage, there is no such thing a silver mine. It is high grade Pb-Zn ores that carry the freight, Ag is the gravy. That being said there are some miners that can now live off the silver (if they didn't foolishly hedge) and can stockpile Pb and Zn.

 Based on my research, the safest "silver" major is PAAS. The main reason is the diversification of producing properties and size of resource base. It is still "cheap", the capitalization is about $3.80 per oz of Ag in situ. Their problem is making money as their ore grades are nothing special, average of 118 g/t.  Compared with SilverCorp SVM.TO, which is valued at $9.89 per oz in-situ but with an average grade of 255 g/t.

Ultimately, it is all about moving rock....



AGoldhamster's picture

Also BVN, IAG and others

Up: EGO, KGC and others

Guess OE games

Flakmeister's picture

Yes, but we are discussing miners with Silver exposure.... :)

rosiescenario's picture

...bearing in mind SLW sells silver produced as a by pure silver plays were  all up nicely today...maybe someone is scared SLW may have less silver if demand for copper (for example) declines (ditto lead and zinc, also associated metals).

I have avoided SLW because of my concern that they could get crushed in a worldwide depression since the primary metal demand would fall causing their supply of the by metal silver to also disappear.

flacon's picture

But isn't silver, "money" (argent)?

Flakmeister's picture

  SLW is rich at these levels. You understand their business model better than most. They do not produce Ag, but have the concession from a base metal mine. Junior Base metal producers have financed the mine infrastructure by selling the Ag rights to SLW. Best way to play is covered call strategies, use the vol. to your advantage.



honestann's picture

Appropriate response:  back up the truck and buy more!

SLW is a big winner for me... and will continue to be.

BobPaulson's picture

Whoa, easy there, it was still up on the day at 37. When I saw your post I freaked and went to look at a chart. That one has been one of the few equities I bought and held (since $12). I expected to see it down to 25 or something after reading this.

Spitzer's picture

Even a gold junior like International Tower Hill ITH got murdered at the close, wtf?

flacon's picture

It is strange, considering Monday is DOUBLE POMO day.... 

nachtliche's picture

Wow that is outrageous. Glad I rolled my SLW calls. They just ripped a bunch of people off at op exp. I noticed everyday the past 3 days, US markets have been trying to push down PM in early trading, but they can't keep the price down. They can't stop the rest of the world from buying on any dips.

jtb14's picture

Do you think slw. will survive the currency collapse?? Im making a shortlist of stocks I'd keep or buy for a bargain. So far its PSLV.

mberry8870's picture

What will also be interesting is the effect of Dodd/Frank on collateral requirements for derivatives. Forcing everybody to buy the ever increasing debt of our government.

bob_dabolina's picture

That looks like shit.

99er's picture


Merry Christmas!

That's all for the year folks. Enjoy the holidays.

AR15AU's picture

So the futures closed down... interesting... Do you have any further insight? Was an important level rejected?

99er's picture

Prices had been moving up within the rising channel (in blue) but have recently stalled and for a time were outside of the channel. During this period there were early indications that a possible new channel--down (in purple)--might develop. In today's trading, prices appeared to first re-enter the upward channel but at the end of the day, fell back outside. This is a failure to recapture that rising trend and may indicate that the down channel may indeed be the start of a new trend.

From an Elliott Wave perspective (and I'm new to this), one possible count for the price action today could have us just completing an A-B-C up to (ii) of a five-wave down.

Finally, for fans of chart patterns, there is a potential Diamond Top that has just been completed.

Happy Holidays!


Cdad's picture

Hey, but the recovery is on and stocks are historically cheap and profits are kick ass and L. Blankfein is IN DA HOUSE and P/Es are expanding and car sales are ROCKIN' and burritos are cheap and The Bernank is bitch slappin' the currency down and exports are going to double and the tax [whatever] just passed and the tax [whatever] will save or create millions of jobs...ummm...even though it is...ten years old...

But never mind about that because there is UnicornDew freakin' EVERYWHERE and the PixieDust is going cheap these days...[ummm...actually PixieDust is ramping like freakin' corn]....

But never mind about that because Wiki is leaking...about BoA...

But never mind about that because the mirror ball in the lounge at the Roach Motel [SPY] was blinkin' and kickin' and the VIX says that risk is FREE and the drinks are all on the tax payer [aka you]....ummmm....

So COME ON AVERAGE JOE...time to write that paper check that comes with ye ole' credit card bill and slap that bad boy down on BLACK or RED.  Time to buy stocks.  Who needs food anyway?


billhilly's picture

Either you are writing this from the Christmas party or you REALLY need to check into buying some decaf....

LMAO though!

cougar_w's picture

It's a dip. BUY IT QUICK! GO GO GO!!1!!one

I suck at this. I'm going to go eat some lunch.

Shell Game's picture

'Buy the fucking dip, you fucking idiot'  [still laughing from that one..]

dehdhed's picture

too late, already went back up

for a moment there i thought the 3/10 percent plunge meant the sky was falling and i hesitated

obamaphobe's picture

the machines misfired on  msft on close as well

Hephasteus's picture

But you can't even buy a piece of shit plastic xbox controller for $150 bucks because their is so much demand and there just isn't enough labor on the planet to make enough supply. And their was he media splash on halo reach around and the media splash on the fucktard controller making big deals out of it's initial sales. AS they desperately try to make trends and attention whore.

They want massive 3d tv sales and they can't even get people with tube tv's to turn them on and watch their garbage.

AccreditedEYE's picture

It looks so beautiful....

Gordon Freeman's picture

Wait until Monday--some fucking convoluted, utterly fabricated BS will be trotted out over the weekend (just in time to gun Asia), and the US will open strong, fade, eke out a green close, etc forever and ever, amen...

Groundhog Day, bitches!!!

Shell Game's picture

Yep, only fun to be had is in the after hours.

Hugh_Jorgan's picture

You nailed it. But, this curtain gets thinner and thinner every market day that they unfurl it over the rotting corpse of the captial markets to hide the evidence. Most everyone refreshes themselves at this ridiculous, gassamer-thin facade each day and happily places their heads back into their orifice of choice, after seeing that the Dow isn't careening downward for some unknown reason. However, just like duplicating cassette tapes, each generation loses fidelity and eventually the whole mess begins to stink so bad that it can no longer be hidden...

Cdad's picture


Exactly.  Well said.  From the thin facade to the rising stink...I get every bit of that.

Well said, Hugh.


buzzsaw99's picture

usatoday sez BUY NOW!

Helix6's picture

Which is to say... sell as soon as the Lemming Run starts to taper...

And remember it's better to be a week early than a minute late...