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

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To: tyc:> who wrote (66472)7/27/2009 1:28:22 PM
From: maxncompany  Read Replies (1) of 78412
 
Can't say for sure. On the one hand I'd say the volume is just short term "noise" that steals from short term traders. It also steals from investors who are buying at that moment, though of course investors will not notice a couple pennies over the course of a year or two.

OTOH, this practice has played a large role in this year's rally and who knows how long it continues. This is a fairly new practice, so to some extent an unknown. The big wild card is the possible shut down as the Senator has promised. And I have to say it could happen by this fall. I mention that because people should be aware that if so, it could occur at a time when the market has had a very extended rally, one ripe for a big fall.

Being a new practice, it brings some unknowns. Another and bigger unknown, will it be shut down? And people haven't discussed yet, what would happen if it were used on the way down. After a big extended rally like this year, a correction could be expected and these guys could make a lot of money on the way down, as well as up.

Sorry, I don't have much in the way of a definitive answer. Stay alert, as a new practice brings unknowns.
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