Gold has completed The Golden Cross and major Bullish Reversal is underway after this "FOMC week" correction. Now we should move much higher and Goldman Sachs with its call for Gold $1,050 by the end of the year is the very good contrarian indicator.
By the way, very interesting situation was happening today with McEwen Mining. Somebody from Goldman Sachs was all over the bids and MUX was traded with total volume of 20.7 million shares and Up 8%. (Update: Now with all after hours trades accounted the total volume between NYSE and Toronto stands at 30.8 million shares vs average volume of 3.5 million shares). That Somebody was caught Very Short after McEwen Mining run this year up to $3.74 and this "FOMC Week" That Somebody was "coincidentally happy" with MUX hitting low of $2.66 before very strong rebound and close at $2.88. Can we talk about manipulation again? One trade was particularly notable in the after hours: at 16.32 9.5 million shares were traded at $2.8804. Last month at the end of February the total short position in MUX was reported at 25.5 million shares, so somebody used this week the opportunity to close at least part of it.
The upgrade from Cowen and Company has added to the fire: McEwen Mining Price Target increases to $4.57. One more reason for the huge volume spike was mentioned as the rebalancing in GDXJ - Junior Miners ETF. We will see in a week time the change in the short position in McEwen Mining to find out the real picture.
Now we have the Volume Buy Signal in McEwen Mining and this rebalancing has coincided very nicely with the "FOMC Week" Gold sell off and shaking the weak hands out of the company stock. We will see what will happen next week and will monitor the Gold Golden Cross media talk this weekend.
The upgrade from Cowen and Company has added to the fire: McEwen Mining Price Target increases to $4.57. One more reason for the huge volume spike was mentioned as the rebalancing in GDXJ - Junior Miners ETF. We will see in a week time the change in the short position in McEwen Mining to find out the real picture.
Now we have the Volume Buy Signal in McEwen Mining and this rebalancing has coincided very nicely with the "FOMC Week" Gold sell off and shaking the weak hands out of the company stock. We will see what will happen next week and will monitor the Gold Golden Cross media talk this weekend.
Small change games around TNR Gold could be ended in tears for the "players" as well very soon. The penny stock was sold into 3 cents on no volume again today. Next move in McEwen Mining and very strong announcements from International Lithium this week will change the picture very fast, TNR Gold holds 25.5% In International Lithium, shares of McEwen Mining and back-in right into Los Azules Copper project with McEwen Mining.
Eric Sprott - Gold To See Powerful Bullish "Golden Cross" Within Days TNR.v MUX GDX GDXJ GLD ABX NG
C.S. Eric Sprott is talking about the "Golden Cross" - the very powerful bullish signal coming for Gold within the next few days. On the chart above you can see the very strong first move of the new Bull market in Gold from the December 2013 low. We are just 2% from 20% increase when media will start talking about the new Gold Bull market being "confirmed officially." As you can see MA 50 is turning decisively Up and is ready to cross MA200 to the upside.
The very important driving forces behind this Gold rally is the record buying from China and the ongoing Gold Manipulation investigations. Eric thinks that all major bullion banks are at risk now and their compliance departments are very busy trying to manage the damage of potential litigation and fines. "The most important here that this process removes the manipulators out of the market. The ceiling is taking off from the Gold price now, they can not continue to manipulate Gold market as they did any more"
You can listen to Eric on the link below and we will run a few charts showing what "Golden Cross" means for particular stocks.
