GDXJ Q4 review, page-6

@ DaLatta,

would you have a view on the price drop on Friday and the addition of PRU to GDXJ?

My hypothesis:

1) Price did hold up during the week and after the ann on 15/12 as traders where expecting the SP to move up when PRU would be added to the index;

2) On the rebalance day, some traders started to sell, as all gold shares where trading down due to POG, and then the SP spiraled down. As price was 35% down, some fund managers had to sell at the closing, so SP did not pick up even after the 75 mn addition to GDXJ;

Does it make sense? Would you have a different view why such correction on the SP?