Hi Ho Silver

The rise in silver (SIVR) has been extraordinary.  Apparently there are several reasons for the run up, not the least of which is the filing of several lawsuits alleging silver price manipulation.  The chart below makes it clear that the S&P 500 continues to under perform commodities, especially silver.

The chart was printed about an hour before SIVR tanked at 13:09 EST.  Was it only a coincidence that just as I started to write of the wonders of SIVR it crashed?  Rarely do I look at daily charts these days, yet now here I am looking in horror at the 2 minute SIVR chart!  Time to summon up some discipline. 

At the moment, only one of several possible sell rules is in effect for SIVR.  I'm on the hook to sell SIVR (some, not all) if there is a 12% drop in the weekly close.  A 12% drop from the high close of $26.69 (last week) means I have a mental stop to sell SIVR if the weekly close is $23.50 or less.  This is a "kill switch" sell.  If SIVR reaches a weekly close of $23.50 or less, the rule says we must lighten up on SIVR regardless of any other factors such as technical indicators, other opinions, and news reports.  Of course, if SIVR trends higher from here, so does the $23.50 mental stop.

SIVR has now stabilized at about $28.  I'll be interested to read Harvey Organ  tonight to see if he mentions the sudden drop in SIVR this afternoon.