Zeev's Turnips Patch-No Politics (ZEEV)

[mlsoft]

Babylon...

I dunno, and suspect no one does. I took my losses on the trading position in GLG this morning, but with the intent of replacing it with call options basis either April or May, and will get either the GLG or GG calls (GG looks better at the moment) or perhaps a combination of both. The calls give me more leverage with a defined max loss built in, and the premium is not as bad as it was a month or so ago.

My best guess is that the gold stocks are selling on anticipation of a large drop in the price of gold when the Iraq war situation is settled. If that is indeed the case, the play will be to buy the news since gold was going up long before an Iraq war was in the viewfinder of the market, and the real causes of gold's rise have only improved the fundamentals for the yellow stuff.

I should have mentioned that I noticed some of what you mentioned i.e. gold trading with the market rather than against the $USD today.

mlsoft