Thursday, March 02, 2006

Silver rocket

It’s going to be a short update today, but I can hardly suppress my excitement. Silver spot rocketed 41 cents or 4.21% to close at $10.15 an oz today. The silver stocks went absolutely berserk -- the three that I own, MGN, SLW and SSRI, went up by 8.34%, 11.92% and 9.43%, respectively. Elsewhere, CDE, WTZ, SIL, and PAAS all increased by 6-11%. The increase in gold stocks was reserved in comparison, with the HUI going up 2.89% to 321.76. It would be dishonest, however, to say that I have foreseen this move, especially after my wavering stance this past weekend. I’m acutely aware of my own emotional sways with the daily undulations. My approach continues to be to hold a core PM position during this secular bull and swing trade to increase profits and/or reduce volatility.

There was a flurry of activity in my accounts in the past two days: I purchased 100 sh of EEM (emerging market ETF) @ $98.55 for the asset allocation account, 200 sh of PBW (PowerShares Wilderhill clean energy) @ $20.90 for the actively managed account. I also had an outstanding limit sell for 500 sh of MGN @ $8.15 which was filled today. I want to keep the actively managed and asset allocated portions roughly equal, so expect more activities going forward.