Metal-Miner Compression Trade Grinding To Convergence
Yesterday, when we considered some of the possible compression trade opportunities presented by the suddenly jittery market, we highlighted a very attractive convergence trade between the Gold-Copper ratio and that of Cold/Copper Miner stocks, which for the mast part excluded the impact of the manipulated stock market indices and relied purely on alpha differentials. Indeed, a few trading hours later, all those who put that particular compression trade on (which like every self respecting BSD TBTF wannabe of course involved lots and lots of leverage), can now take the rest of the day off, as the spread between the two legs has now collapsed by about a third.
The chart we presented yesterday:
And its update today.
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