Gold stock down on an up day?

Discussion in 'Stocks' started by cgtrader, Nov 27, 2006.

  1. Maybe some of you can help me with this one.

    A major unhedged gold/silver miner is down on a day where both gold and silver are up.

    No news out, nothing else I can see.

    Any ideas??
  2. could be news...many of the miners up big; even when indexes were makin' new lows gg kept goin' higher.
  3. mcelitetrader

    mcelitetrader ET Sponsor

    Look for some overbought/sold with your indicators. The pace of buyouts in the gold sector has been running on a massive scale over the last few weeks.

    Try out some pairs trades on the apparent divergence in the major you are following to the rest of the group and to spot itself. I sat through some just silly moves in gold stocks dropping today with gold pushing new highs out of the way. Means the next few days should be setting up for some solid runs from my limited experience.

    Simple way to see the divergence is something like this chart using XAU as the baseline.....
  4. Thanks for the responses, I've been trying to find the best L2 to follow,

    GDX, GLD, and now I'll have to look at XUA although I don't think I have the entitlements.

    Some days she follows quite closely, other days she has no care in the world for what the metals are doing...
  5. happens all the time

    market makers run the XAU + HUI components up and down

    sometimes external events like secondary offering (s )

    or HF meltdowns ... or surprise mergers also affect the p.m.


    or just a simple squeeze or dumperoo through an option strike

    or a pin near option expiry ... all part of the game

    upgrades ... downgrades ... wall street media even
    earnings ( ! )

  6. The stock market is a crazy place. Everything down except for PNTR which is 100% up. PNTR is a scam company that makes little in the way of revenue while everything on the S&P500 looks like its coming in for a landing.

    PNTR and PTNR were both up big. I think the traders just typed the initials wrong.

    Wall street logic. Ugh.
  7. one more possible reason why a gold stock (s) could be down

    perhaps there was a big holder who had nice profits in the name

    and decided to sell into month end esp if they needed to raise cash as some other names ( non metals ) were in the red today