Honestly, how can this be? Gold closed up, and silver down, both only a little. The red in my account, and the % of losses I see had me thinking gold had ’bout fallen outta bed! Well, you know I said that Friday and Monday’s miner price action was looking all wrong, and making no sense. Today only adds to that. The best guess here is that prices are consolidating/correcting again. A look into the price chart of each one might make some sense of it. If it’s a correction, then with these price declines, volume ought to be a higher than average… is it?

Well, I guess something closed higher… SSRI closed up a bit on fairly large volume. AKG also closed a bit higher, but volume was huge! Even GLD closed up a bit, but only on little more than average volume.

We’ve got our decliners, but not on the large volume, as I had expected, like: AG, RIC, CDE, PVG, AUY, KGC, ABX, RGLD, PAAS, GDX, SGDM, SLW, SLV and SA.

And, there were some big volume decliners, as I did expect, but only 3: IAG, FSM and HL.

I can read this! The metals did not move as expected. The market wanted higher metals prices, and didn’t get them, so there was some selling… and no serious buying, no big deal. Price support isn’t even being threatened by the price action we’re looking at… not in the least! And, think of this: Gold’s risen the last 5 trading days in a row, and up 7, out of the last 8 trading days. Silver’s done just fine, too, but the mining shares have been acting poorly just lately. This would be justifiable, as they had been running ahead of the metals… things are just evening up at this point. If the metals should continue to climb, and the price support in the charts I’m looking at holds just fine, the next stage, or leg up, will come soon enough.

Here’s to your accumulation of real wealth!
Harold F Crowell


2 thoughts on “Lots of Red Losses!

  1. Harold, thanks for all the info you put out. I enjoy reading it and putting it to use. I am a young investor and have not come to understand what volume is and what difference it makes when things move in big and small volume. Could you explain that to me? Thanks


    1. Toby, volume is just an expression for the number of shares that were exchanged in each stock for the day, and gives an idea as to how slow or fast, how busy or lazy the trading was in each stock. You look for things like correlation, where big price moves are accompanied by large volume; or divergences, where unusually large price moves might have occurred on light volume, or its opposite, where unusually small price moves took place with great volume. These ‘say’ things about the day’s trading, and what the collective thinking of the traders and investors might have been. They give ‘signs’ of a continuing trend, or possibly its reversal, especially around price levels of underlying support, or overhead resistance. Today, we had a nominal breakout to a new price high in gold, on only mildly greater volume… this may be the cue for an explosive upside breakout, as others see it, and want to get aboard quickly… or, others might think it tepid and weak, and possibly use it to sell out now, take a profit, and cause it to top here. It may be an inflection point, and even now, as I type at 9:20 pm EST, Whoa! I see gold up, and knocking on $1,300. This could be it! We’ll likely have some idea by morning. Harold


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