Lots to choose from this morning. Do I buy something hit hard or something really strong? I opted for the latter. Claude Resources Inc. (CGR) has not budged through this whole gold meltdown. For one thing, some institution is sitting there guarding the price at $1.02 bidding for 96,400 shares, so fat chance I was going to get my shares ahead of the elephant. I payed $1.03 to get in and now I am done.
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You may remember that post I wrote a while back where I wondered aloud whether gold would drop to either $1181 or $1165. Well, we are at $1161 right now and you can read my mind :)
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Click on the chart to ENLARGE
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BTW. Need Encouragement? Want to Make Sense of What is Happening?
http://news.goldseek.com/GoldSeek/1280244432.php
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What do you make of the following, challanging the options expiration manipulation: http://www.worldofwallstreet.us/2010/07/they-always-take-gold-down-for-options-expiration-day-not.html
ReplyDeleteThis study raises more questions than it answers, at least for me.
ReplyDeleteOptions have different strike prices. I would like to see if the majority position was out of the money a day or two before options expiration and then in the money when the bell rang to settle things up.
If the strongest players are not going to lose their shirt - as their position is going to pay off - they have no motivation to bomb the market. In fact, they have a motivation to support the market so they get their payout.
However, if a preponderance of the money is going to lose all their money when the option expires, I imagine they would have a lot of interest to get the price rearranged in their favor, if you know what I mean.
So I guess the figures in the article you cite are correct but, for me, don't prove too much. A followup study would be to analyze how much money is bet on what price, THEN figure out how the game is being played.