Once again the huge ratio spread trades are supplying the crushing of the mining shares as they are performing worse than either gold or silver bullion.
Thursday, March 10, 2011
HUI on the receiving end of the ratio spread trades
The HUI is known for huge gaps both up and down. Today is no exception with the index gapping sharply lower and breaking down below both the 50 and 100 day moving averages. The index is crawling back above the 50 day but has some serious technical work to do in order to repair the damage on the charts.
Once again the huge ratio spread trades are supplying the crushing of the mining shares as they are performing worse than either gold or silver bullion.
Once again the huge ratio spread trades are supplying the crushing of the mining shares as they are performing worse than either gold or silver bullion.
Any thoughts on hedging strategies for positions in the miners Dan?
ReplyDeleteHi Dan,
ReplyDeleteGenerally speaking, can this ratio trade go on forever? It seems like positive earnings and gold reserves do not matter anymore to the market regarding mining shares.