The swoon in the juniors since the FOMC non-taper defies explanation. What really takes the cake is the tepid reaction to Pretium's (NYSE:PVG) extraordinary results. I have no idea what sort of conditioning has taken place among investors left in this space, but their expectations make absolutely no sense.
Hazarding a guess, the price action has more to do with index gaming (and little else) by hedge funds or more precious-metal fund capitulation. PVG is a higher-profile, more liquid name. Perversely, in this latest capitulation phase, it's the more compelling, rapidly advancing sector names that are being hit the hardest. Lydian, Continental, Pilot, Sabina, Vista, Detour and Torex stand out the most.
Before PVG dove into their Valley...
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