We wont know for another week whether shorts used this opportunity to cover. It will certainly be something of interest. With regard to short term direction of these gold stocks - yes, agree. You can probably bet on mean reversion. ie close long RRL position in the match, then flip it to establish a new short position at 1.75. Vice versa with the downweights ie cover shorts and go long.... With the exception of SLR in my opinion.
There wasn't enough buying interest in SLR for the GDXJ fund to complete their full sell volume. Due to the lack of buying interest to offset the GDXJ seller, SLR was the worst performing gold producer on the day. The GDXJ fund will most likely need to finish this selling off on monday morning with an algo. Assuming this 2.6mill offer is them left in the book after the match.
