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Gold/Mining/Energy : Gold & Gold Stock Analysis -- Ignore unavailable to you. Want to Upgrade?

To: bull_dozer who wrote (15002)	9/17/2008 7:11:24 PM
From: benwood	Respond to of 29622

I don't think it's a dead cat bounce -- way too big and too delayed, in my view. However, it could still be a bear trap of extraordinary size. Who knows what distortion was being created, or rectified, today. It easily could be the opposite of a dollar-short/gold-long/financial-short hedge fund(s) liquidating, and instead, a new blowup of a gold-short/financial-long position. I suspect there are many heavily levered players going all-in one way or another, and if so, many will be bound to blow up on volatile days or weeks. The financial sphere in the past few years has rewarded the individuals running funds that all got on the same side of the boat. Funds betting the other way blow up periodically to keep the bonuses huge, and when the game finally exhausts itself, other people's money is lost and those at the helm just look for new jobs. There is much upside and very little downside to playing the game in that way. That all said, tomorrow could easily be a 30-40 dollar down day. However, if tomorrow is a big up day, then I'd side with the London rumors of a large, heavily levered player buying by short positions.