The simple reason the PM stocks recovered much of their losses late in the session is because they were heavily shorted ahead of the announcement of margin hikes by the CME group. The crooks covered the shorts on the news. This is exactly how it went last time gold margins were hiked too, if anyone wants to look that up. And the blast off in gold shortly thereafter recovered most of the lost ground in the juniors, except for those unfortunate enough to have sold into the downdraft.

Now I have ranted about this topic before, but I wonder just how lazy the crooks are about hiding their tracks on this insider move. It seems the SEC is so inept that nobody bothers to even pretend that the market is not corrupt. They short away, carpet bomb paper contracts into thin markets, and rape the specs coming and going - and no one gives a big rats ass who sees it anymore. My guess is that a cursory investigation would reveal the same players shorting the hell of gold futures and the mining stocks immediately before each CME increase, and covering immediately after the news breaks. If so, then anyone with an IQ above an eggplant could see this is an insider trading scam and prosecute said misbehavers to the hilt... Wanna bet that none of this is going to happen?

As I disclosed earlier, I was selling some stocks and shorting others into this week, and covered/bargain hunted today. That my friends comes down to an understanding of how the crooks run this market up and down around COMEX silly season. If a retail trader such as myself can see this scam, and post about it a couple days before hand, just where the hell are the regulatory agencies that are highly paid to monitor this stuff?

cheers!

mike