Monday, June 1, 2015

Dalradian: riddle me this

IKN - look at that big fat finger buying Dalradian at the close!

I dunno if it was a fat finger. This silly buying happened on the last day of the month, and IKN notes there was other silly junior miner buying at 3:59 on Friday too.

I'm no market professional, but could it have been some junior gold fund (ETF or otherwise) who was seeing inflows this month, but which wasn't putting the cash into their stock basket because volume had disappeared, and for some reason had an "oopsie" moment  at 3:59 and decided they had to fill the basket then? Is that possible? Permashave Dave, you wanna weigh in here?

I guess it's a stupid theory. But Sprott are stupid, aren't they? And they're known for letting fund price run away from NAV, right? And it's not like a fundmonkey cares what price he pays for basket stocks, right? He makes money off the management fees, he could care less about performance.

In any case:

It seems that silly spike has attracted above-average volume into the stock today. Maybe it's just stupid retail people thinking there's some big story. But, again, at this point in the junior gold miner cycle, stupid can pay the bills, no? And I guess if you bought Dalradian at $0.88 weeks ago, or at $0.65 months ago, you probably know enough about the stock that you don't want to sell it to some newcomer. It's not like DNA has a reason to suck in the future, beyond perhaps a coming collapse in the gold price.

I guess Friday wasn't enough of a kick to break it above the handle formation though. Unless the Friday 3:59 pop was a giveaway that there are entities out there still intending to accumulate more DNA this summer, but who aren't seeing the necessary volume. I'll enjoy watching this play out, anyway.


  1. Not much to add, window dressing at the end of the month? Extra funds put to work when the HTF programs wind down for the week/month?

    Front running the mid year June to September seasonality strength in this sector? The funds do not get paid a management fee for cash.

    1. Front running can be done without popping a stock 20% though.

      By "window dressing", do you mean intentionally making a crazy print at EOM just to make themselves look good? Cos they're going to have to print good prices next month too, then.

    2. Though I have to say I can't believe that this sort of pop is unintentional. Are there really market pros putting in orders manually anymore? Doesn't everyone use a program to manage buys and sells?

  2. Pretty stupid trade that one would not execute with their own money, hence why it is OPM with some one at the control switch.

    Anyway, I have stopped losing money on juniors since I do not put ant cash into this stupid game.

    1. At the bottom and doing the funky chicken, arms a flappin and legs a shakin....trying to catch a bid..

      I come around for the funny banter.