PLS and VUL are good examples of shorters being able to enter and exit just as easily it seems. With PLS the price got smashed and a large chunk of shorts got exited in a single day. The same goes for VUL but on the inverse with the price blowing the shorters out the water and they closed a large position in a single day. It seems like these positions are agreed purchases from a large holder where it’s possible for the shorters to exit whenever they please. It’s the suckers who follow these big short moves that make the biggest difference to the share price in my opinion. Once a big short position is released I often notice a gradual decline in short positions as all the suckers feel like they’ve been left naked without cover.
At a gold price of $4300/Oz it is hard to see any shorter doing very well in the Aussie gold market, especially considering we are staring down the barrel of a slide to 57c. Our local economy is going to see insane inflationary pressures because of this AUD slide. We could see $5,000/Oz faster than we think. If that doesn’t put a rocket under the Aussie gold miners I don’t know what will. At some point logic needs to take over and we all know what an Aussie gold bull run looks like when it finally gets legs.
GMD Price at posting:
$2.76 Sentiment: None Disclosure: Not Held
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