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Sulliden Gold Corporation Ltd T.SUE.WT



TSX:SUE.WT - Post by User

Post by play_n_layon Aug 10, 2011 10:12pm
372 Views
Post# 18929262

Gold Stock - Market Divergence

Gold Stock - Market DivergenceSuper excited about the gold stock market diveregence we saw today. With the HUI up 3% and the market down nearly 4% we are seeing a great play for gold stocks right now. They have alot of catching up to do as they are trading like gold is at 1300 or 1400$/oz.

Scenario 1:
Gold Pulls Back = risk removed from market = market ralles = all stocks ralley = gold stocks ralley

Scenario 2:
Market keeps dropping = gold keeps running up = gold stocks (that have now divereged from market trends) run up

Scenario 3:
QE3 announced = stocks run up = gold runs up (inflation risk increaes) = gold stocks run up

I really can't think of anything that will bring down gold stocks over the next few days.

GLTA
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