Win us with honest trifles

Regarding that Long NEM/Short GOLD pair trade idea…

…of last week, which posited that due to the close correlation of Newmont (NEM) and Barrick (GOLD) operations these days (Nevada, Pueblo Viejo, etc) the GOLD beat of last week flags a NEM beat this week:

With half an hour left in trading before NEM reports it’s worked quite well and there’s a +4% arb on the pair, so in theory there’s no need even to hold through earnings. I don’t mind admitting it would be enough if I were in charge of an eight figure hedged trade, then again I’m chicken.

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