Gold and Silver Juniors, Mid-tiers and Producers Message Board

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Gold/Mining/Energy : Gold and Silver Juniors, Mid-tiers and Producers

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To: dara who wrote (60391)	7/18/2008 2:26:19 PM
From: LLCF	Read Replies (3) of 78420

Re. Long majors and short juniors. Well, no type of trade like that would surprise me as far as SOMEONE doing it.... there are all sorts of little capitalized "groups" lurking around in trading rooms at all sorts of institutions dreaming up stuff like that to do. My office used to be on whole floor of the Chicago Federal Reserve.... in the lobby every morning they had a big "counter" cranking away the money supply (I forget which M) which I really think is quite funny thinking back on it. There were groups doing "pair trades" all the time... buy the biggies sell the little guys (banks, biotech, whatever), across industy groups, within them whatever! It never made any sense to me, but people do it. Now do I think this is a popular strategy with big money behind it like the currency pair trades ($ carry, Yen carry, etc)? NO. I can't imagine theres that much money in those trades, but heck... whoever IS doing it is in Canada... Toronto or Vancouver or whereever... so we KNOW Canucks are quite a bit more commondity focused than in the US. So.....I suppose there may be those in these trades I have no idea how big... can you find "short interest" in these things and "net out" the warrants (shorting against those isn't shorting)... but I dunno... I'd just say that trade is "not large". More likely the juniors have short interest against that companies warrants... one could check short interest vs warrants outstanding for a bunch of juniors and correlation. DAK

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