Comment: the intermediate term options on gold stocks

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the intermediate term options on gold stocks

are also very bullish. Seems gold has been manipulated down since late September or October. I sometimes look at option volume to determine where the "smart money" thinks a particular stock is headed. In the case of junior gold miners (GDXJ) the longs outnumbered the shorts in the april-may time frame by a 5-1 ratio. The heaviest volumes were in the $22-$24 range with a current price around 17. This would indicate that the smart money expects a 30% gain in 1-2 months. I put a small speculative bet on their side, we'll see how it turns out.

Josh Brueggen
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