[ZH] Silver Soars 17% From Intraday Lows: Biggest Swing On Record

This is a follow up on the post on Friday about buying Gold and Silver.
Here's a quote from ZeroHedge:

Silver is up over 17% from its intraday lows today - this is the biggest positive swing since our data began. All the previous major swings have been downshifts, most recently in September 2011 (-22% and -18% over 2 days). Volume is very high also. Gold is back above $1,210,up over $70 from its intraday lows...

Those who where planning to bottom fish had a very narrow opportunity both in terms of market depth and duration of the window in the middle of the night in the Asian hours.

Here are the screenshots (they do not show the Asian hours).

Contrarian Signal — Citi's Dutch Strategist calls "useless Gold a 6,000 years bubble, the longest-lasting bubble in human history"

After more than 3 years of steady decline (as forecast on this blog), pessimism around gold and silver have reached such extremes that these assets should now become vey attractive to true contrarian investors.

Here's the most anti-gold report I have ever read in my life:

The gold bubble is, of course, pretty impressive. Intrinsically useless gold has positive value. It has had positive value for nigh-on 6,000 years. That must make it the longest-lasting bubble in human history.

The author even question the fact that gold has any value at all, and calls it a 6,000 years bubble. Can you get any more bearish than that? I can't see how.

Based on this, I have added to my GLD (@113.29) and SLV (@14.99) positions.

Buying Gold and Silver

Quick update: I have bought some gold (GLD@121.50) and silver (SLV@19.60) as I find the correction to be very substantial and sentiment readings to be extremely negative.

Again, this is a short term trade as on the long term, I believe PMs will drop in value over the next few years, with silver trading in the single digits at some point, and that's the view I've been sharing since silver was close to $50.

Closed Gold and Silver position

I've been away for too long and have missed a number of opportunities with the markets... Including selling my gold and silver when the sentiment peaked a few weeks ago...

I just closed my long gold (open GLD@119.28 - close GLD@129.09)  and a long silver positions (open SLV@18.24 - close SLV@21.09) with a small gain, but disappointing compared to what it could have been if I had more time on my hands!

Fukushima Leaking 300 tonnes a day of highly contaminated water into the ocean

I have made countless posts about Fukushima over the past several years as to me, it's the biggest and largest man-made disaster in history.

Today, Mish has posted a few links which should give anyone shivers. Here's what Reuters announced: Japan says Fukushima leak worse than thought, government joins clean-up

Highly radioactive water from Japan's crippled Fukushima nuclear plant is pouring out at a rate of 300 tonnes a day, officials said on Wednesday, as Prime Minister Shinzo Abe ordered the government to step in and help in the clean-up.

The revelation amounted to an acknowledgement that plant operator Tokyo Electric Power Co (Tepco) has yet to come to grips with the scale of the catastrophe, 2 1/2 years after the plant was hit by a huge earthquake and tsunami. Tepco only recently admitted water had leaked at all. [...] 

"We think that the volume of water (leaking into the Pacific) is about 300 tonnes a day," said Yushi Yoneyama, an official with the Minister of Economy, Trade and Industry, which oversees energy policy.
[...]

Tatsuya Shinkawa, a director in METI's Nuclear Accident Response Office, told reporters the government believed water had been leaking for two years, but Yoneyama told Reuters it was unclear how long the water had been leaking at the current rate.

Shinkawa described the water as "highly" contaminated.

Short ES futures contract [Updated]

I just shorted the ES SP500 contract @ 1682.00
I intend this trade to be short term trade, lasting only a few days, but I keep my options open.

Update: Call it luck, but the ES just dropped 5 points within minutes of entering my trade. I now have a GTC stop order @ 1681, making sure that this trade will not lose money.

Gold and Silver Trade

It's been a very long while since I last posted here, as I've been extremely busy working 12 hours a day on the three projects that I have tried to run in parallel (most probably a mistake to have thought I could do that!). I have not even been in a position to find the time to trade or follow the markets as closely as I would have wanted.

But with gold and silver so depressed, I see value in them right now — at least for a short term trade, on the long term, I favor the depressed one digit silver price that I have been forecasting for a while. I've been quite vocal about all these "experts" who forecasting silver $150 or gold $3000 and took the short side of that trade while people were piling in on silver $47 all the way down to $36 but now that Silver is down close to 60% from the top, it seems like not a single soul is bullish on it... That's the right time for us, the realists and the contrarians, to become bullish and courageous and take the opposite side of that view.

Consequently, I have just opened a long gold (GLD@119.28) and a long silver positions (SLV@18.24). It might not be the very bottom, but probabilities are a in a favour of a relatively nice bounce.