GO
Loading...

Despite 13-Week Low, Short Silver: Cortes

Monday, 23 Apr 2012 | 1:03 PM ET

Even though silver touched a 13-week low on Monday, trader Steve Cortes says the risk remains to the downside.

He tells us 3 negative catalysts bode poorly for silver bulls.

-Weakness in Asia: “India shares are at a 3-month low," he says. Cortes feels precious metals and Asian markets are closely correlated.

- No QE: “I do not believe any type of Fed QE is imminent,” says Cortes. (A stronger dollar is typically negative for commodities, generally.)

- The chart is terrible: “Silver is even underperforming gold,” he says. “That suggests to me a lot of retail money is in this metal rather than gold because it’s less expensive.

All told, Cortes expects the decline in silver to continue. “In a world in low growth and low inflation – silver should be trading around $20,” he says.

Cortes is playing this thesis with a long position in the ZSL, an ultra-short ETF.

Ahead of Netflix's Earnings
Silver has reached a 13-week low and the FMHR traders discuss the key catalysts. Netflix is also set to announce its Q1 earnings data after today's closing bell, with Michael Pachter, Wedbush Securities analyst.





______________________________________________________
Got something to to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap. If you'd prefer to make a comment, but not have it published on our Web site, send those e-mails to fastmoney@cnbc.com.


Trader disclosure: On Apr 23, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC’s "Fast Money" were owned by the "Fast Money" traders; Joe Terranova is long VRTS; Joe Terranova is long MCD; Joe Terranova is long JOY; Joe Terranova is long HPQ; Joe Terranova is long LQD; Joe Terranova is long JPM; Joe Terranova is long NXPI; JJ Kinahan is long AAPL Options; JJ Kinahan is long C; JJ Kinahan is short GS puts; JJ Kinahan is short WFC puts; JJ Kinahan is long TLT; JJ Kinahan is long CSCO; JJ Kinahan is short YHOO puts; JJ Kinahan is short SPY; Mike Murphy is long BAC; Mike Murphy is long JPM; Mike Murphy is long INTC; Mike Murphy is long ANF; Mike Murphy is long SBUX; Mike Murphy is long FCX; Mike Murphy is long PHM; Brian Kelly is long LWM; Brian Kelly is long KRE; Brian Kelly is long USG; Brian Kelly is long BUNDS; Brian Kelly is short EWW; Brian Kelly is short FTSE 100; Brian Kelly is short EURO STOXX BANKS; Brian Kelly is short YEN

For Channing Smith
Channing Smith is long AAPL

For Michael Pachter
Wedbush Securities makes a market in the securities of NFLX

For David Strasser
Janney Montgomery Scott LLC currently acts as a market-maker in the securities of WMT
Janney Montgomery Scott LLC currently acts as a market-maker in the securities of TGT
Janney Montgomery Scott LLC intends to seek or expects to receive compensation for investment banking services in the next 3 months from WMT
Janney Montgomery Scott LLC intends to seek or expects to receive compensation for investment banking services in the next 3 months from TGT

For Steve Cortes
Steve Cortes is long ZSL


CNBC.com with wires.

  Price   Change %Change
SLRC
---

Featured

Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report