Monday, October 7, 2013

GDX and GDXJ not playing along

I wouldn't expect the miners to make a leveraged move to gold, if the perceived reason for gold's strength is fear over a possible US technical default.

(As opposed, of course, to gold's strength resulting from a bumper Indian harvest and imminent wedding season.)

Still, it's weird that at this moment, with GLD +1.08% and SLV +2.96%, we see GDX at +1.12% but GDXJ at -0.05%.

Especially with GDXJ being an ETF full of a bunch of silver miners dontcha know.

So is it just a case of some hedge fund cokehead puking his GDXJ position?

Or is it that GDXJ is still full of utter crap like Silvercorp, GUY, SUE, LSG, Sabina, CSI, Great Panther, Aurcana, Atac and so on? Cos an ETF made out of crap should probably be expected to perform in a crappy way, fundamentals be damned - especially once all the sucker retail has been driven out of the crap end of the market.

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