the de-hedging of the hedge play...

I am now beginning to think this last washout might signal the end of NCM being used as a hedge against gold long plays.

Why has ncm not seen the rises along gold? Because it was the hedge fundies used to minimize risk.

Why was it used as a hedge? Because it is so stable and predictable.

What happens now longs have been flushed!

Less profitable to use as a hedge.

Result? Natural market price appreciation in proportion to gold price and earnings.

Hedges will be back in force after it meaningfully rallies from these lows.

But... Looks like a great ramp position to crack new highs from here as gold will not get below $1400 and operations have stream lined.