There are some fascinating observations concerning gold on his website, this is a snip out of something that he published on friday...
Hedge Fund Short Covering in Gold is the Story
full post: http://traderdannorcini.blogspot.com...n-gold-is.html
This narrative simply will not die as it keeps occurring - hedge funds continue to cover short positions to an extent far exceeding the amount of freshnew buying that they are doing.
Last week they covered ( shut out) 4,675 short positions. They outdid themselves since they covered a whopping 5,248 shorts made up of futures and option positions! On the long side, they reduced their exposure. It's too bad that we cannot see what occurred from Wednesday through Friday. My view is that today's powerful rally through overhead chart resistance cleaned out some more of the positions in a big way.
Let's again put this in perspective - at the onset of this year, the hedgies were sitting with a total of 72,571 outright short positions, futures and options combined. As of this past Tuesday, that number has shrunk to a mere 21,073 or even a reduction of 51,498 shorts.
Over this exact same period, the number of outright longs has increased from 106,675 to its current number of 144,080, for an increase of 37,405 futures and options positions.
Again, the obvious alyst for gold this season has so far been short covering as the prominent characteristic one of the biggest specifiions on Earth.