Zeev's Turnips Patch-No Politics (ZEEV)

[ItsAllCyclical]

>> Shorts attacking gold miners <<

I think that's a lousy explanation for the divergence in gold vs gold shares. Contributing factor? Maybe a little.

Sure a few like DROOY have gone massively up, but for the most part short interest has stayed level from mid Dec to mid Jan. In some cases it went down slightly, in others up slightly.

http://www.nasdaq.com/asp/quotes_full.asp?mode=&kind=shortin...

In the case of DROOY there are some who believe some funky accounting may be going on there.

KGC is obvious as many arbs buy ECO and TVX and hedge by shorting KGC. Given the average daily volume on these shares the short interest alone would not suffice to keep these shares from rising.

In order to surpress the HUI we'd have to see MASSIVE shorting similar to DROOY in every HUI issue. Not happening. It's one thing to suppress an individual company by shorting...it's quite another to suppress an entire sector.

Very poor writing imho.

I think Sinclair and other's have done a much better job at explaining the divergence.