Al Quaeda buys gold stocks

rodden · Nov 20, 2003

Quote from bungrider:

To name this thread "Al Quaeda buys gold stocks" is moronic, since you don't have any proof that this is the case.

Everytime a market moves, are you going to start some thread about someone whom you IMAGINE to be a player in that market doing something which, in retrospect, seems to make sense to you?

So if the dollar comes down, will you say "Soros is shorting more $$$"??

No.

But - is saying "Maybe Soros is shorting more $$$" any more thought-stimulating than "Soros is shorting more $$$" ? In any case, I don't pretend to be objective; anybody who does is deluded.

Must we have "proof" before we take positions - especially on issues for which proof is never likely to be available?

dgabriel · Nov 20, 2003

Quote from rodden:

At 3:00 yesterday afternoon, every major gold producer listed jumped in price and closed at or very near its high. For most of these stocks, the day's highs were 52-week highs. There was no news or technical development to account for this amazingly coordinated buy-in.

At 4:00 A.M. this morning, gold jumped in London moments after Al Quaeda blasts rocked British interests in Istanbul.

Al Quaeda was buying golds yesterday.

This is flimsy speculation to say the least.

Sardo_Numspa · Nov 20, 2003

Quote from rodden:

Must we have "proof" before we take positions - especially on issues for which proof is never likely to be available?

True. I have no proof that you're a low-grade moron but it's becoming more and more likely.

Rearden Metal · Nov 20, 2003

The USD/Gold exchange rate correlates normally to the Dollar's recent drop vs. all major currencies. Were Al Quaeda terrorists buying up Euros too?

Surf is right. Spurious correlation.

nitro · Nov 20, 2003

Although it is extremely difficult if not impossible to know who is behind certain trades, I do know that a HUGE and I mean HUGE number of puts were bought on BA (Boeing) THE DAY BEFORE 9/11. Suspicious is an understatement in this case, and even traders that I respect and have been in this industry for more than half of my life say that is not a coincidence. In fact, many of them complained...

I would not be at all surprised to learn that AlQueida is in and has been in the markets ahead of it's terrorist attacks.

Regardless, it makes for "interesting" conversation. But I challenge you to make use of this as a trader.

nitro

rodden · Nov 20, 2003

Quote from Sardo_Numspa:

True. I have no proof that you're a low-grade moron but it's becoming more and more likely.

..and you are probably barely literate. I apologize if my arguments are too esoteric for you. Struggle on.

rodden · Nov 20, 2003

Quote from nitro:

Although it is extremely difficult if not impossible to know who is behind certain trades, I do know that a HUGE and I mean HUGE number of puts were bought on BA (Boeing) THE DAY BEFORE 9/11. Suspicious is an understatement in this case, and even traders that I respect and have been in this industry for more than half of my life say that is not a coincidence. In fact, many of them complained...

I would not be at all surprised to learn that AlQueida is in and has been in the markets ahead of it's terrorist attacks.

Regardless, it makes for "interesting" conversation. But I challenge you to make use of this as a trader.

nitro

It is a challenge - especially given that sometimes the insiders miscalculate. If Al Quaeda did hope to cash in today they must be feeling a tad disappointed; gold is weak and gold stocks are selling much below yesterday's close.

Nevertheless, when we see an entire sector moving strongly in unison in the absence of news or TA developments we can at least stand alerted - somebody knows something! The probability that all significant members of a sector would all lurch in the same direction without strong motivation must be extremely low.

msfe · Nov 20, 2003

Quote from rodden:

If Bush is attacked in London, gold @ 450.00.

is Jack the Ripper still around ?

Enter the sinister world of Jack the Ripper...........

http://www.accomodata.co.uk/jack.htm

rodden · Nov 20, 2003

Quote from Rearden Metal:

The USD/Gold exchange rate correlates normally to the Dollar's recent drop vs. all major currencies. Were Al Quaeda terrorists buying up Euros too?

Surf is right. Spurious correlation.

Like any organization, Al Qaeda has its operating costs; they need money - lots of it. Some Al Qaeda backers are multimillionaires (eg: Bin Laden); you can be sure that those backers maintain their monied status by "investing" just like other rich people do. To think otherwise is willfully naive.

ARogueTrader · Nov 20, 2003

Quote from rodden:

It is a challenge - especially given that sometimes the insiders miscalculate. If Al Quaeda did hope to cash in today they must be feeling a tad disappointed; gold is weak and gold stocks are selling much below yesterday's close.

Nevertheless, when we see an entire sector moving strongly in unison in the absence of news or TA developments we can at least stand alerted - somebody knows something! The probability that all significant members of a sector would all lurch in the same direction without strong motivation must be extremely low.

The gold sector is a very small sector, when you compare it to other sectors like health care, telecom, etc. Someone doesn't have to know something to move gold stocks, they just have to be buying into that sector. Because the gold market is very thin and very speculative, one large buyer into a fund could easily more the entire gold stocks sector.

It doesn't take much for gold stocks to move up or down on speculation.

You still have yet to provide any evidence of direct correlation, you theory may or may not be accurate.

What nitro said is accurate, that unless you are on the inside of a price manipulation scheme it is worthless information for traders and likely a waste of time to even bother with.