We switched from long to short on SLV yesterday when it broke down under $40. Actually to be honest we got out of our long at $45.09 and I considered going short right then, but hesitated. So, we missed a five dollar move.
Never the less we shorted 50 shares at $39.67 and put in a limit order for the remaining position at $38.50 as posted. The limit was hit yesterday afternoon and so we are short another 50 shares from there giving us a cost basis of $39.09.
The 15 minute chart says it all for the short term. You can see the gap down at the open along with the unusually heavy volume below. Right now it is trading at $35.09. It has been a vicious $12 cliff dive in just two days and it may take a breather. We already hold profits so, lets move our stops down to the middle of the gap at $37.50.
If SLV continues on its way to the 20s we will move our stops down each day to the low of the prior day.
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