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Gold/Mining/Energy : GDXJ - Market Vectors Junior Gold Miners Index
GDXJ 93.63-1.4%Oct 31 4:00 PM EDT
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To: Tommaso who wrote (99)11/13/2009 1:15:27 PM
From: Jack Be Quick   of 196
 
Tommaso,

Yes, based on my observations over the past decade, I'd say that is a good example of how bear raids in the gold sector are conducted - by small investors shorting 1000 shares through their brokers on margin. And when they short the shares, they do it with the intention of holding the short for very long periods of time until the underlying shares go to zero. They do not simply make a quick strike at a point in time when the panicky scaredybugs are particularly nervous and just collect a quick 10-20-30% off of bugs tossing their shares at the first whisper of trouble.

Plus, GDXJ is likely to have strong institutional support from deep pocket investors holding for the really long-term, not penny-flipping, day-trading bugs. The pension funds and what-not probably will favor it for its transparency and likelihood of stable long-term returns.

I think you've nailed it.

Thanks,gl,
Jack
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