Silver Wheaton

We are looking to buy 400 shares, but only on perfect terms. Yesterday our 41.96 bid fell 11 cents shy of the actual low from which SLW took a strong bounce.  Today we'll try bidding again at 42.51, three cents above a promising Hidden Pivot support at 42.48. A 12-cent-stop-loss is suggested. _______ UPDATE (1:38 p.m EDT): We'll continue to use stink bids in this stock, since I don't trust the rally.  Although buyers of precious-metal shares are ostensibly the good guys, the way they have been manipulating SLW in particular has been viciously predatory.  Gap-up and gap-down openings are occurring on most days, and buyers who have been suckered by the former will eventually dry up, allowing the stock to experience genuine weakness at the bell that will properly set the tone for the entire session. _______ FURTHER UPDATE (1:54 p.m. EDT): I'm establishing a tracking position of 400 shares, since two subscribers reported fills at 42.50 that held using a slightly wider stop-loss than I'd advised. The actual low was 42.27, and SLW has rebounded smartly since, touching 43.17.  A further push above 43.64 today would leave the bulls in good position to go marauding next week.

We'll continue to look for a buying opportunity, but only on optimal terms risk-wise.  Because Friday's treacherous rally altered our correction target a tad, I'll suggest lowering the bid for 400 shares to  41.96, four cents above a promising Hidden Pivot support. A 41.71 stop-loss is suggested.

By popular request, and for the benefit of newer subscribers who missed our earlier ride in this stock, I'm going to try and get us aboard again with as little risk as possible.  This implies doing what we've just done in Newmont -- i.e., buying shares at a swing-low target, taking partial profits to reduce our cost basis, and then letting what remains of the position ride.  Let's get started by bidding 42.23 for 400 shares., stop 42.07.  Our bid is derived from the pattern shown, and it assumes that yesterday's weakness will go on to crush the midpoint support.

We happened on a 35.67 correction target during last week's impromptu webinar, so I'll suggest bidding down there for 400 shares, good-till-canceled, with a stop-loss at 35.49. If you can capture some profits on the short side as SLW falls (assuming it does), that will help cushion the stop.  We'd try again at 34.61, since that's where SLW will likely fall if the first Hidden Pivot gets trounced. ______ UPDATE (March 21, 1:43 a.m. EDT):  Odds of a fill have diminished somewhat with Silver now trading higher, but we'll leave the stink bid in anyway, since the downside target itself remains valid. ______ UPDATE (March 21):  The stock has gapped higher for two consecutive days, so we can forget about buying it on-the-cheap.

So much for our stink bid.  For now, we'll put aside plans to buy the stock, since we should prefer to do so on weakness. For what it's worth, there's a Hiden Pivot at 37.02 that seems likely to show some stopping power. It lies just a nickel above yesterday's high. ______ UPDATE (11:05):   My apologies for not supplying a minimum rally target above 37.02, since the 38.62 achieved thus far was almost precisely predictable via the coordinates (on the 60-minute chart): A=30.560, B=35.550, C=33.600, for C=38.59. _______ FURTHER UPDATE:  Wow!  Because SLW has blown past the target by 15 cents, let me put a more important one in play:  45.01.  Its provenance and pedigree are shown in the chart, along with a 'p' midpoint at 36.93 that until this morning had precisely contained the uptrend for three days.

Silver Wheaton's strength has hardly been conducive to our opening a new position in the stock, but it's possible we'll get a low-risk opportunity to do so on the pullback that has followed yesterday's head-fake high. For further details, see today's tout.

The fleeting head-fake on the opening refreshed the bull trend by exceeding January 5's external peak at 36.78. The implication is that the pullback that has ensued could provide us with a low-risk buying opportunity.  However, the 35.68 midpoint support of the corrective pattern will not be particularly useful for such purposes, since it coincides with the low of yesterday's selloff. Instead, let's put in a stink bid for 800 shares at 35.10, three cents above the 'd' target associated with the midpoint.  A 34.93 stop-loss is advised.

We blew out an 800-share position yesterday that we'd held for quite some time. The sale price of 34.16 yielded a theoretical gain of $15038, based on an adjusted acquisition cost of 15.35.  My goal is to re-board the stock when it looks opportune, establishing a new long-term position that all subscribers can hold. It's possible this will occur at a higher level, but my main objective is to establish the new position when risk appears low.

We are long 800 shares @ 14.91 against eight February 33 calls shorted for 1.94.  My apologies for botching the instructions yesterday, transposing an important detail referring to "higher" or "lower" in trying to explain when to buy eight February 36 calls.  I saw no references to this error in the chat room and will therefore assume either that no one did the trade, or that there was little interest in it. Officially, however, we'll try again, using a slightly different tactic:  Bid 0.41 for eight February 35 calls, day order. ______ UPDATE (4:03 p.m. EST):  In the chat room just now, I've recommended covering our short February 33 calls for around 2.40,  since SLW will blow to at least 36.81 if and when it gets past the 35.28 midpoint pivot where it has stalled today. I will also recommend closing out the 800-share position at 36.81 (take 10 cents' discretion), good-till-canceled, since I'd like to start fresh, allowing new traders to get aboard.  Since we've covered the Feb 33 calls for 46 cents more than we received for shorting them, that will raise our cost basis on the stock to 15.35.  To be candid, in making position adjustments with puts and calls over the last month or so, I've traded the stock very poorly -- especially when I had you buy Jan 34 puts when SLW spiked to an all-time high at 42.34.  The entry could not conceivably have been better timed, but the puts were way too far out-of-the-money to begin with, and we blew them out at the worst possible time -- for a pittance when the stock made a last-gasp feint to 40 before tanking all the way down to 28.85.  If we can get out at the 36.81 target, that would represent a theoretical profit of a little more than