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Gold Stocks Overbought Short-Term?

|Includes:DUST, VanEck Vectors Gold Miners ETF (GDX)

There has been quite a run-up in gold stocks. GDX has risen 30% since December 20. This has resulted in a plunge in our shorts of DUST. Since shorting in July of 2012, we have made 40% on our investment. (Shorting stocks is where an investor borrows shares from someone else to sell them today, promising to buy them back in the future. The short seller hopes that the shares will fall, as he can buy them back later at a much lower price. He loses money if the shares rise. There is a lot of risk to shorting. Since the price can rise without limit, he can lose more than his entire investment. So, great care must be taken when shorting.)

Stocks: GDX, DUST