re: After Hours Action in SLW...
John Najarian of OptionMonster.com was on CNBC's Fast Money
and SLW was his featured pick. He cited the huge call volume
that was noted in the Real Money article I posted about
earlier today.
SLW traded 9.1 million shares today vs. 5.9 average daily
volume. After the September & October hedge fund liquidations
it's been rare to see a PM stock trade over it's average
daily volume, unless it's on one those -500 point down days in the DOW.
Those 27,000 call options and this volume set off a lot
of bells & whistles TA screens.
Most PM stocks are now +50-100% off their Oct/Nov lows.
And SLW is only +25% off it's lows. So you've got .60 cents
downside to it's ytd lows, and $1.30 upside just to it's
November highs of a couple of weeks ago.
That's 2:1 upside to downside in the near term. There just
aren't any quality PM stocks left with this type of
risk:reward. It should be an easy buy & hold double by
spring. And it's been a pretty good trader over the last
few weeks for those so inclined.
I think this is potentially "the best" of the remaining
PM laggards. With today's volume, and with the option activity
noted by the media, it could easily get some momentum players
piling in.
Keep this on your buy list and add on any weakness.
You don't want to chase this on the open. And if we get a
"gap up" open tomorrow... if you're already in... then you
know what to do with at least "part" of your position.
Here's a link to an interview with SLW's CEO. It's very
informative. Listen to it tonight, or tomorrow pre-open,
and then wait for a buying opp if you don't already own it.
...if it gaps up, don't chase it, just keep it on your watch
list. With the double mention by the Street.com/Real Money,
Najarians mention on Fast Money, and the after hours spike
if Gold & Silver are green it should run to $3.60-$3.70
where it's been hitting resistance, and then pullback.
...if that happens, wait for the pullback.
Here's the link, it's an EXCELLENT interview, scroll down
to the "4th Hour" and click on the link:
financialsense.com
4th Hour
The Producers
Peter Barnes, CEO & Director
Silver Wheaton Corp.
(TSX: SLW | NYSE: SLW)
SOTB |
