Wednesday, June 11, 2014
In fact, we can make up a narrative explaining GDXJ
Let's zoom back out to a normal view of GDXJ:
Look at the volume at May 27/28, and the volume yesterday.
On May 27/28, gold got smacked down in OpEx. What would you do? You'd short junior miners, right? Thus the large red volume bars.
Then yesterday, when the juniors fail to fall along with what certainly is still a pretty horrible gold chart, you'd have to cover, no? Thus high volume yesterday.
I wonder if the shorting volume from May 27/28 has been fully covered yet, or if we can get another day or two of pop. We'll see. Who knows, maybe gold even continues to dig itself out of the OpEx hole.
Then I wonder if gold (and then the miners) starts to suck again in anticipation of the Jun 18 Fed meeting. Or something. Cos it's always something.