I’m relatively new to working the metals (though I’ve 32 years in the stock market). And, my old timing program is too, as I’ve never employed it to time the metals before, so I don’t have a lot of experience trying to time the metals with it. The creator of the program (back in 1992) said that it would work just fine doing so. It definitely was signalling an opportunity only 2 weeks ago, when we got it up and running to time gold. At that time, I said it was signaling that risk appeared to have been wrung out of that market, and indeed it was.
That said, however, now it is necessary to state that it is reading pretty high risk in the precious metal… but, we really do not want it to fall back from this price level, as the price chart formation it would be creating, would be a textbook head-and-shoulders top, and that would more likely signal a possible protracted decline, that could take prices down lower and for a longer period of time than any trader would want to go.
I explain this now to say that if you have been a buyer of mining shares, and you have some goodly profits in them, as I do in nearly all of mine, you might want to put some tight stops in place, or even be a profit-taker now, if you feel so inclined, and patiently wait for the next opportunity to buy back in, which is probably out there in front of us, perhaps before this year’s end…
But, all I’m saying right now, based on my extremely limited experience with the timer, and using it on gold, is that the technical measuring indicators of market risk for gold are mostly registering that risk is now high, as opposed to the low-risk signal it was giving only 2weeks ago. Take it For What It’s Worth… I’m just sayin’!
I just sold my position in SA. It had been a weak sister, and not performing as I would have expected. In its place, I purchased MUX. Look into the 2, perhaps you’ll want to do something, too.
Here’s to your accumulation of real wealth!
Harold F Crowell