I saw where the metals were having a good day Monday from before the market even opened here. So, I expected to see a lot of green in my trading account. Instead, it was rather mixed, with some up, and others down. I don’t know what to make of it. I’m a bit confused. So, anyway, I’m going to chart them all, and see if there’s ‘message’ in there somewhere, but I suspect I’ll be as confused when I’m done as before I started.
I first see issues that closed up, but well off their highs of the day, and some really big volume. I don’t much care for the look of these: SSRI.
Then, I see some that closed up some, but on less-than-average volume, like: AG, RIC, PVG and SLV.
Don’t know what’s going on with those that closed about at their lows, after having gone up a lot, and their volume was massive, as with: AKG and FSM.
I even see those that rose a decent amount, and on little more than average volume, that are a picture of technical health, like: CDE, ABX and GLD.
Another category is any that closed ever so slightly higher, on perfectly average, normal volume, as: HL and SGDM.
Those that closed slightly lower, and on totally average, normal volume: IAG, KGC, AUY and SA.
Even some that rose a bit on big volume, but don’t have the ugly look of the first category above: PAAS and RGLD.
Slight decliners on light volume…: SLW and GDX.
There appears to be absolutely no rhyme or reason to today’s picture. The overall picture, by charting an average of all the symbols as one, indicates a slight rise on less than average volume. Both of the metals rose and closed higher today, gold and silver… so, why so much confusion, and no clarity among the individual mining stocks. I do not know. I cannot say. The metals have risen 4 days in a row, and that started with a big pop last Wednesday. You would think the miners would be responding well, but they’re looking to be in quite a bit of disarray. The action of both Friday, as I wrote it up, and the even stranger action today, would seem to indicate that among traders and investors, there must some kind of confusion, as they’ve certainly got me scratching my head! It will likely resolve soon, I’ll bet.
There does not appear to be any particular danger, so we’ll hang in there, and check again Tuesday morning to see what the new day might bring.
As of 7:15 am EST, the metals prices are down some. It would make perfect sense to expect shares prices might do the same, but the past 2 trading days, the miners have not been trading in a sensible manner…. so, they’ll go up??? The chart patterns are not threatened by this erratic price action yet.
Here’s to your accumulation of real wealth!
Harold F Crowell