selling 1/2 ZSL +62%

At Friday's close ZSL was up 40% from our call. Not bad for 6 weeks, and another big winner this year. We'll now sell half the position, perhaps repurchasing that half-position later if silver makes a big bounce. [EDIT : On Monday's open when we affected our half-sale, ZSL was +62% from our call.]

Those who bought the ZSL options we mentioned were rewarded for their risk, up hundreds of percent. See the entry immediately below this one for that call. Also the options we mentioned for TNA were up as much as 80% later that week.

Regarding the August 8th blog entry, TBT has been a bit of a disaster so far. We said that we'd not be surprised to see it as low as $20 and if so we'd possibly buy more. We've been asked if we're buying more. The answer is "not yet", though if anyone has not bought any then now might be good time.

Why so? Bond shorters have been out in force for 2 years, and all have been crushed so short covering is no longer likely to add to buying pressure. All those calling for hyperinflation have been dead wrong, as we expected. Rather, the deflation we've long written about is entrenched but must end someday. However that day could still be years away.

The Fed's recent "Operation Twist" announcement seems to have resulted in 10-year bond rates going up, which is good for our short thesis. Irony? Possibly some Fed front-runners taking profits so the rise in bonds could well resume shortly especially if markets continue to drop. That'd be bad for our short.

However with so much bad news widely known and so many people frightened about global economic collapse, maybe this is the bottom for equities and interest rates. As of yet though, there are no such signals in place which is why we're in no hurry to add to a losing position - it could become a bigger loser as some do. Eventually though, we feel very confident that we'll come out ahead on it.





We receive no remuneration or incentive directly or indirectly in any way, shape, or form for buying or selling the stocks we do, or for mentioning any stocks or companies in this blog. If we hold existing positions we divulge the fact. This blog is merely a diary of some of our thoughts and trades and is in no way whatsoever to be considered investment advice of any kind. Always without fail consult a competent, experienced, and honest broker or investment advisor before making any investment or speculative decisions.

To be notified when this blog is updated : Please e-mail christianguinness@hotmail.com with "Subscribe to blog" in the subject line or click here to do so automatically if your computer is configured accordingly. We have never shared our mailing list with anyone, nor will we. Please note that we only send update notifications when a trade idea is diarized or updated, not if a blog entry only contains general commentary.