This was the day that was! Wow! Let’s see, we were up big before the open, so it should have popped. It continued to climb to crazy heights, then, best I can tell, the bottom fell out and gave it all back. I see a lot of red in my trading account, where, early in the day, I was looking at big gains. So, volume was likely huge, and seeing how we had a massive bearish engulfing pattern type candlestick, it was only the beginning of a period of correction, that has just started. Do the charts tell this story, or some other???
First of all, I don’t have a problem with the idea that we would start to correct with a move like today’s. If my timer is going to work in gold, it was/is saying that technical price risk had gotten plenty high, and I could have anticipated a reversal from here… but, not being experienced with the timer working gold, I couldn’t know if the signal was valid. It would appear, initially, that it is. I’ve 2 issues that actually closed a bit higher today…
AKG was one that closed marginally higher, and, as I had suspected, volume was huge! The other that closed higher, and again, on truly huge volume, was PVG.
Looking at all the losers on the day, I’ve those that fell on truly massive volume, like: MUX, SSRI, AG, CDE, RIC, IAG, AUY, FSM, ABX, KGC, PAAS, SLW, HL, SGDM, GDX, RGLD, SLV and GLD.
The 2 metals ETFs, SLV and GLD, show truly ugly intra-day reversals on incredible volume. It would not be any surprise at all, if it took awhile to sort out, correct/consolidate/decline, before a new uptrend could resume. In other words, traders bailed on big time profit-taking, and it may only be the start of a spell of it. IF the timer is good at timing the metal, which I have reason to believe it is, we may get a signal for the opportunity to accumulate more shares in the best of these mining companies… and, any of you who have not bought any, or much, yet; another opportunity may well present itself. If I see it, I’ll call it right here!
My analysis might have had some validity… except, the markets reversed yesterday on a rumor, that was later proven to be false! So, the metals have headed back up, and are ahead by nearly $7 as of almost 6:30 am EST. Can you say market manipulation?
Here’s to your accumulation of real wealth!
Harold F Crowell