PPR - Thoughts on SLV

Published : August 3 2011 at 12:39 ET

For those who perhaps missed the conversation a couple of weeks ago, The Portfolio Simulator Dude, which had originally entered a 25% position in the SLV, is using a 10% add-point to pyramid his position. Thus if he entered at 36.71, he is adding the same number of SLV shares when his initial position is up 10%. This is why the buy-stop was placed at 40.38 (36.71 + (.10 x 36.71) = 40.38. Although volume on the SLV is very strong for this time of the day, it is not required that volume be a certain level, as this is nothing more than a price-point pyramiding scheme, and a very simple one at that.

Investors often want to try and make successful investing a lot more complicated than it has to be. We find that the simplest methods, even when it comes to the "ponderous" process of pyramiding a position that is so far working for you, are often quite effective.

This information is provided by Virtue of Selfish Investing, LLC (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing, LLC. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2016 Virtue of Selfish Investing, LLC. All rights reserved.