Dave Morgan....Although Morgan - never told us he was LONG and called a top some time ago?
Another..." hey look at me - i'm always right " Morgan missive?
Out of his " spec silver position " but still holding
JUST an unhedged 75 % silver position?
Is there a bigger AH?
'I'm Out Of My Speculative Silver Position' – David Morgan
26 April 2011, 01:33 p.m.
By Debbie Carlson
Of Kitco News
https://www.kitco.com/
(Kitco News) - Well-known silver investor DavidMorgan said he sold his speculative silver position following Monday’srally to over $49 an ounce on the futures market and is “happy to be incash.”
“I’m out of my speculative silver position,” Morgan said, which includes futures, options and equities positions.
He said he is sitting on 25% cash, but keeping his core 75%position in silver. Morgan is editor of The Morgan Report and is anindependent precious-metals analyst with www.Silver-Investor.com
That doesn’t mean that silver longer-term won’t go higher, hesaid, but the way the market was acting was a sign to him to lighten upon his position. Since Monday’s peak, silver prices have pulled backand are trading around $45, down about 4% on the day. The retreatdidn’t surprise him.
“All markets go up and down,” he said, adding that he hadanticipated some topping action by early May after a sharp run-up sofar this year and big gains last year. Looking at seasonality patterns,silver often tops in early May.
“We had a huge sell-off in price on huge volume,” he said.“Whenever you get a big move with big volume, that is usually a strongindicator that there is a change in trend for a while. I think there is achange in trend on a short-term basis. But the long-term major trend(higher) is still in place.”
Morgan is a veteran of the silver market and is accustomed tothe extreme volatility that comes with the territory. “This market isnot for everyone. Unfortunately I’ve seen a bunch ofJohnny-come-latelys … who haven’t studied it. Silver is one of the mostemotionally driven markets out there,” he said.
Now that he sitting on just his core position in silver, hesaid he’s content to see what comes next. Like many long-term investorshe has a trading plan that will direct him on his next move. It’simportant to stick with plans that work, he added. “Most people don’thave the discipline to keep (their plan) consistently. Right now I havenothing to do but sit back and be patient,” Morgan said.
By Debbie Carlson of Kitco News dcarlson@kitco.com