Trading stocks is a funny business. It’s on the mind 24/7; it is tough to escape.
Yesterday, I was driving to a doctor’s office before the market closed and passed a McDonald’s (MCD) sign on the highway. I wondered how the stock (MCD) was trading, and what the chart looked like (shit)? In the office, I saw a cast removal saw made by Stryker (SYK); I wanted to see the SYK chart. Later in the hospital (yes, rough day), I saw a new kind of hand sanitation dispensers everywhere I looked made by Steris (STE); another chart to check. You get the picture, and if you trade for a living you know what I mean.
So what brought Goldman (GS) to the fore? It was a comment form a friend in the business. We were discussing the various ways the big firms screw clients. Goldman’s name came up and he commented that “every time he gave Goldman an order he felt he was putting his foot in the mouth of the lion.” (trading OTC pre-Manning was a racket) then he added, “I am shorting GS-their move into managing the affairs of high net worth individuals will never be as profitable as ripping off their investment banking clients or their proprietary trading.” Priceless…
Donald Takayama, Ala Moana, 1961. Photo: Leroy Grannis
Donald passed away this morning, October 22, 2012. Much will be written about him.
Dale Velzy invited him to California to shape when he saw a board that Takayama had made in Waikiki. At 12, Donald came over and made the West Coast his home. Originally living in the South Bay, he later moved south to Oceanside, where he built Hawaiian Pro Designs into his personal statement on the topic of making fine surfboards. He always remained tight with Dale Velzy. When Dale passed, Donald was deeply shaken. Married to Diane, both a wife and business partner, Donald was far from a perfect human. A fun-loving guy, he enjoyed jamming the penny slots and letting them roll. He experienced his travails, many in plain view for us all, yet he was universally loved and respected—a sweet, sweet man who was Hawaiian-style, generous to a fault, giving to those he felt worthy, and, finally, a teacher—the highest attainment of the human condition. His contribution to surfing in general was broad and lasting, not only in what and how to ride, but in what it really meant. Among surfers that he mentored were Joel Tudor and David Nuuhiwa. Dale lovingly called Donald the “little guy” but we all knew that Donald was huge beyond size. He was a rock among pebbles, from a beach that is changing its look and character. Remember him.
The short-term bear case for silver has played out well for us.
That said, one name we used to play silver short in our fund needs a second look. The stock is Silver Wheaton – SLW.
At the time of our bearish postings on silver, SLW was overbought on a daily basis. We traded SLW aggressively and were rewarded for shorting intraday rallies for the last two weeks.
With Friday and today’s price action, the daily technical metrics of SLW started to improve, that has us taking a closer look at the weekly SLW chart. What we see tells us SLW is not a safe trading short now and it could move higher.
The most bullish aspect of the SLW weekly chart is the simultaneous break-out of its price trend lines and its momentum oscillator trend lines.
We are still bearish on silver, and short a small amount of SLW at the time of this post but we will be reeling it in soon. We have not yet done the technical work, but the silver miners may be diverging from the metal.
SLW – Weekly
Disclaimer: This communication should not be construed as an offer to sell or the solicitation of an offer to buy any security. (Click here for full disclaimer)