“Woe to the land whose king is a child and whose leaders are already drunk in the morning. Happy the land whose king is a nobleman, and whose leaders work hard before they feast and drink, and then only to strengthen themselves for the tasks ahead”. (Eccl 10: 16-17)

"When misguided public opinion honors what is despicable and despises what is honorable, punishes virtue and rewards vice, encourages what is harmful and discourages what is useful, applauds falsehood and smothers truth under indifference or insult, a nation turns its back on progress and can be restored only by the terrible lessons of catastrophe." … Frederic Bastiat

Evil talks about tolerance only when it’s weak. When it gains the upper hand, its vanity always requires the destruction of the good and the innocent, because the example of good and innocent lives is an ongoing witness against it. So it always has been. So it always will be. And America has no special immunity to becoming an enemy of its own founding beliefs about human freedom, human dignity, the limited power of the state, and the sovereignty of God. – Archbishop Chaput

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Friday, April 15, 2011

Gold - 8 Hour chart update


  1. Hi Dan - any thoughts on the HUI's marked underperformance today. I wouldn't ask, as I know you've covered the subject many times, but today felt particularly strange to me with AU miners down almost universally and many juniors hit relatively hard. Just curious. Thanks and enjoy the weekend.

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  3. Hey Bruce, Turd Ferguson (Turd's blog)points out that today was options expiry for equities and there is usually some unusual activity as a result. Makes sense, if there were alot of options excercised there may have been more on the sell side taking profits. Look for Monday to be good especially if PM's continue with the up trend.

  4. I was going to ask a very similar question. Why have gold and silver bullion rallied over the last couple of days while the respective mining shares, predominantly (apparently), sold off? Is this a rotation out of some stocks in favour of others? It doesn't seem constricted to large or small cap stocks. It seems broad-based. Profit-taking? Anticipation of a move lower? Is there an option situation I may not be aware of? Other scenarios? I'm interested to know your thoughts on this.

    Thanks for your insights.

  5. There you go (perhaps?). As I was reposting my query, Dig77 has indicated options expiry as the issue. Any explanatory expansion on this comment would be appreciated.

    Thanks again.

  6. David,Turd would be much better to expand on my previous comment. But I do think that investors were also showing some hesitancy, going into the weekend, after being "burned" last friday by a strong close and a crappy Monday (after Goldmansucks made their sell recommendation on oil etc.) I think it's entirely possible that there was some later selling to close out positions before going into the weekend. Couple that with options expiry and our miner's didn't fare as well as they probably should have. Also don't rule out the hedgie's and others adding to short positions to hedge against longs in the PM's. Probably a combo of all three, but Dan or Turd would know better than me :)

  7. Thanks Dig. Appreciate your responses.


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