"Entropy - you're not wrong about that risk " Low risk here IMO.

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kickass365

100 Posts.

12/05/16

13:01

Post #: 17747207
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Originally posted by MarkieMills ↑

Entropy - you're not wrong about that risk - always a big problem. I always have a firm set of rules (that I sometimes ignore on the fly and then get into a boiling frog situation on occasion). Cu is rallying this morning, and the miners have gapped up, but the spot price chart is a illusion created to help separate people from their money IMO - even the volume can be boosted as it is tick flow related, so can turn over the smallest possible trading parcels. Most of the miners have gapped up, but excluding SFR these are on low volume, so I suspect that this is another day of trapping behavior. I like being out of the stock when these occur, so that I can re-enter. If the CU price was flat on the futures and OZL was rally I might think twice.

In the end it is true that mines are always being exhausted, but I have found that the market usually reacts to "concrete" new supply for a while by selling off. On top of this in OZL's case - the stock usually sells off due to pending development risk as well. So it is too good for me to leave alone. However if OZL's SP was in a trough I wouldn't be shorting it.

Finally there is talk about China shelving stimulus that involves further borrowing - big talk - but that might further dampen sentiment towards resources given more airplay.

My thinking is very much about today and tomorrow and the next week or two tops.

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"Entropy - you're not wrong about that risk "

Low risk here IMO.

OZL Price at posting: $5.70 Sentiment: None Disclosure: Held
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0 Great analysis

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