Both MMN and CXC charts were painted down after the close today to the lowest prices of the day. Its been happening a lot with MMN recently, today sent the price virtually down 10% from what it traded at most of the day, and most of it was after 4pm.
Jim Sinclair says many hedge funds running a long PM majors, short PM juniors hedge at present. They are trying to induce selling so they can cover. If people hold, the funds will have to cover and the rush for the door will shoot the price up.
CXC has about an 8% short position on the NYSE, which is many many times larger than most of the bigger HUI companies. Other juniors likewise have heavy short positions.
I'm looking forward to the unwinding.
http://www.financialsense.com/metals/shorts.html
MMN Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
