There is a major sentiment play AGAINST gold stocks that has been in play since late last year.
It is a big call -but considering the general lack of liquidity stakes in the ASX , one that can be done on shorts particularly if all the longs got in last year and are now cashed out.
Shake them out. Loosen up the holds. Manufacture volatility even in the face of of a stable to rising gold price.
The market is punting that QE 2 is working and QE3 won't be called in.
If you believe that. You are short on gold and gold based stocks.
I think we are not far from seeing a massive short covering rally on most gold stocks. OGC will be one of the biggest beneficaries.
OGC Price at posting:
$2.59 Sentiment: LT Buy Disclosure: Held
