GLD over SLV
Chris Kimble suggested this trade idea a week or two ago: long gold, short silver, in a mean reversion trade on the precious metals. I think it’s a great idea. I sold the last of my SLV last Wednesday and Friday as Silver tested its historic resistance at 50. I have bought a little GLD, and ventured into Chris’s idea in one account using GLD and ZSL.
Friday was telling, as it was the first time in month where gold was up significantly (1.5%) and yet silver was down. The only other days that I can remember gold outperforming silver in recent months are days where silver was down big and gold was down less. Maybe the tide has turned.
I mention this only because I had commented on the silver trade previously… sort of another house-keeping comment. The thoughts are not original, as Chris Kimble was the lead dog that I was followed throughout the silver trade, and he is quite brilliant with his analysis.