Why I'm Holding My Silver Shorts

Includes: GLD, JJC, OIL, SLV, ZSL
by: Glen Bradford

Why on earth would I hold onto my Short position in silver at this point in time with this much volatility? Simple, look around - everything that is important appears to be breaking down.

Oil is dropping, because demand is falling and supplies are rising. I think we're heading lower into the double digits.

Gold got creamed this morning.

Copper is at a point of resistance, and I think we are going to break through and head lower.

As Jesse Livermore would say: The Trend is Your Friend. Right now, as I have described earlier, there appears to be a huge polar bear sitting on top of the price of silver. Sure, Silver might give us a few dead cat bounces where traders try to cover their short positions into faint rallies. That said, at this point in time, it looks like there is a lot of weight hanging on commodities in general. Also, the demand in my opinion just isn't there to hold prices up. And so, I stay short.

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(Click chart to expand)

Disclosure: I am long ZSL.