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Politics : Welcome to Slider's Dugout -- Ignore unavailable to you. Want to Upgrade?

To: Proud Deplorable who wrote (11624)	9/15/2008 12:18:01 AM
From: SliderOnTheBlack	2 Recommendations Respond to of 50082

re:[Better buy your gold and silver back.....commodities to soar now"] I have been... ----------------------------------------------------------- From: SliderOnTheBlack 8/28/2008 7:48:43 AM Message 24884656 And now, as we cash in our well-timed insurance policy, now... for the first time in a couple of years, we are buying another type of insurance -- leveraged, dirt cheap, pennies on the dollar - upside insurance. We are finally buying the broken, battered, and beaten down juniors & explorers. Last Friday Rob McEwen the former CEO of GoldCorp was interviewed in this widely circulated article... freegoldventures.com And we began buying a diverse basket of juniors and explorers at pennies on the dollar. We've bought stocks that were trading at $8, $10, even $12, that are now trading for a little over a dollar. We bought stocks that were trading for $3, $4, and $5 that are now under a buck. From Minefinders to Minera Andes, from Richmont to Rubicon, from Freegold to US Gold... we've picked up diverse, highly levered, longterm upside "option" on the price of gold. We snatched up Bear Creek on the cheap -- instead of finding ourselves... up the creek (without a paddle). All that future "upside" insurance, was just bought and paid for, by house money from our "downside" insurance profits. Our insurance profits that protected us from the downside - have now offered us highly levered protection to the upside. ...that's how and why you buy insurance. We took the profits from the gains on our short & put insurance, and we put 1/2 of those profits into our junior and explorer basket. ----------------------------------------------------------- From: SliderOnTheBlack 9/2/2008 7:30:51 AM Message 24900195 "I'm still short half of our original position on the HUI 470 trading range turn. And I am buying weakness very selectively -- "as a hedge to that short" - and buying time via 2009 calls & 2010 LEAPS." ----------------------------------------------------------- From: SliderOnTheBlack 9/10/2008 8:22:10 AM Message 24932096 So what am I doing here - today, right now? I'm looking at financials on the Crème de la Crème of the juniors and explorers, especially those with funding in place, and who are now selling as "options" without expiration dates, at literally pennies on the dollar. I covered some shorts at HUI 320, at 300, and again yesterday. I took 1/2 of the profits from those shorts and bought some calls and leap calls on GG and FCX, a little PAL & SWC and am looking at an initial entry into Palladium, possibly considering a possible paired trade short Platinum/Long Palladium due to the extremes of the ratio spreads. And I'm still letting the remaining profits on those shorts and puts from HUI 470 run... until the market takes me out. I've now brought my trailing stops down to HUI 280-300. 1/2 of all short profits get banked, and 1/2 are a self-funding hedge against my remaining shorts, and build me re-entry long position -- on a "house money" profits only basis. ----------------------------------------------------------- 9/11/2008 5:51:46 AM From: SliderOnTheBlack Message 24936207 Actually seemed safe to stick your head out of the foxhole without the risk of immediately getting it shot off. I covered all remaining puts/shorts on gold "stocks" yesterday, and also "sold" some puts for premium. I've bought back a 1/2 position in my "HUI Horsemen" and added a slew of long dated, and LEAP calls over the last week. However, I am strongly short gold/gld as "insurance" on what I've covered and now re-added long. ---------------------------------------------------------- In all, I've bought back 50% of my original long position, but am keeping puts on GLD as insurance, and if this rally has legs - I'll add more GLD puts as insurance, on the way up. On Friday, the HUI gold stocks were up +10.45% and GLD was only up +3.38%. If the stocks continue to outperform... that's cheap insurance. I'm only carrying about half of my original net dollar exposure, but with much more leverage, as most of my gold stock buys have been call options. GG, and FCX largest positions... followed by AEM, and KGC. And about 1/3rd of my holdings are now juniors and explorers... my first weighted entry to the small caps since the cycle began. These should fly if this rally has legs, as there were mass liquidations, and forced selling in the juniors & explorers by the gold funds... as noted by the Sinclair, Sprott, and Frank Holmes tirades. I'd pay particular attention to oil. If this market selloff last more than a couple of days... oil needs to catch a bid. The G-7 is mounting a unified front to prop up the markets, it's going to be interesting to see how this plays out. A Fed rate cut would be a game changer. As would a market recovery by the end of the week. ...interesting times. SOTB