Posted on both IGO and WSA for discussion:
I have been watching this unfold for months. Rather than tell you what I think I will let you work it out for yourself. It is to do with pairs trading, which is taking two similar stocks and holding one short and one long. In the end if your long makes more than your short you win, regardless of the underlying market direction. The two stocks I have been watching are WSA and IGO.
Do the following:
Make a comparison graph of WSA and IGO Share price over the last year.
Make a comparison graph of WSA and IGO net short positions over the last year.
Draw your own conclusions.
You can see why I have been compulsive to visit the POPE on WSA and IGO with every opportunity.
With strife in Indonesia pushing the Nickel price up $500 on Friday night, what effect will it have on WSA and IGO?
Will the Pairs Trader start to reverse the trade and manipulate it back the other way?
RED
