Yes...I made several trades between 2.20 and 3.50 in the last week of trading. I had never traded it before - I basically never believed in Bre-x, but was simply trading the psychology and volatility. I was long at 3.50 on the last Friday - I sold late on Friday at 3.30 when the Northern Miner's Normet report was leaked to SI - I realized the fraud then - changing from a bullish to a bearish stance, as the gold was clearly alluvial, AND (possibly more importantly) it corroborated that by stating the strange ratios of indicator minerals, not indicative of a hardrock source. So I sold. Over those several trades I lost 100 dollars - and saved my rear by not holding my 1000 shares into the weekend. That saved me 3500 dollars. The power of the SI system to create rumour driven trading is AWESOME - dead cat bounces are likely to be more common in the future because of the Internet, and should be interesting trading opportunities, IF and only IF one has split second timing and is watching the situation like a hawk. Of course I never realized that Walsh's brother "Merrick" aka MikeSloan was manipulating that thread. Actually I am now long my thousand shares at .06 aquired on the next day it traded - it makes a handsome memento of a truly crazy week on the SI Bre-x thread, and a reminder of how careful one should be. I suspect a sympathetic Bre-x effect has driven a lot of juniors down to a point where a short term rally is possible, but remain bearish on the gold sector over the longer term, because of the major upside on the Canadian dollar, which should not be good news for the top lines of Canadian gold stocks. Remember, last time Gold was this low, the TSEGold Index was under 5000. I'm convinced that it is still overvalued at it's current level of around 8300, and is likely in a long term bear market which will reassert itself when the Quebec situation is finally put to rest and Cdn. unit starts to move UP, back to a more normal value of 76 to 80 cents. I have traded some puts on Placer and Barrick since last summer, and have done pretty well on those.
cheers |
