What a day!!! The metals moved up big. Gold was up almost $19 and silver rose $.66! The miners had a great day as well.
Seeing how the price rise was well in place before the open, there would have been a pop… and, seeing also, how that the price closed higher than it opened, I would expect that shares rose during the day, too. And, the volume? Well, the volume should be, in almost every instance, higher than average. So, let’s go to the charts and let them speak for themselves!
Well, first off, I have those that rose in price, and on truly big volume, too… but, other than the morning pop at the open, the price advance during the day was not great… which would be a sign of distribution, profit-taking, and potential topping for this move… which is what we have with: SSRI which closed at a new high, HL at a new high, PAAS, GDX, SGDM and SLV.
Not so with these that rose well during the day, and continue to support a wildly bullish scenario, like: AKG which closed at a new high.
We’ve got others that rose, but not on especially big volume, like: AG which closed at a new high, PVG, AUY at a new high, RIC, CDE at a new high, IAG, KGC, ABX, RGLD, SLW, SA and GLD.
FSM was a special case. Let me explain. They made an offer to buy another miner. This is a very positive sign, as they would not have done so, had they not thought prices would continue to rise… and, being among the first to do so, many more may commence to follow suit!
My take on today’s action in general, is that it’s looking a bit toppy, with a number moving on big volume, but a lot of that volume was profit-taking, selling volume. The prices of the miners are well ahead of the price moves in the metals themselves, if the metals do not continue to follow through, the miners could fall back a good bit. However, if the metals should continue their advance, the miners may wait for the metals to catch up… or, if the word of this bull starts to spread, they may well begin to rise rapidly. That time will come, when a greater % of the investor community catches on to what has started… they haven’t yet, and it’s still very early. This could run a very long way, and make for us some tremendous profits yet.
Less than 1 hour before the open, and the metals are off a bit, as the mining share price action yesterday seemed to imply might happen today.
Here’s to your accumulation of real wealth!
Harold F Crowell