So, I look to see what gold did today, and I see it had risen $20.10, and silver rose $.32, and I’m thinking, ‘It’s going to be a good day!’ I look at my account, and I see green and red! Nothing rose a whole lot, and some of the decliners were a bit large. And, I’m thinking to myself, ‘This isn’t making much sense’. All I’m left with is to look at the charts, and see if they will ‘talk to me before the weekend. Well, will they…
I first see issues that declined some in price, but the volume was massive! As with: AKG, MUX, AG, IAG, FSM, KGC and AUY.
By the same token, I’ve got gainers, and, as with the first I saw that was down, the volume was monstrous! As with: PVG, SSRI, CDE, ABX, HL, PAAS, RGLD, SLV and GLD.
There’s gainers on light volume, as with: RIC, GDX and SGDM.
Totally average volume with: SLW.
So, what gives? With such big moves in gold and silver today, and with such incredible volume in our miners… why so little price change? And, why did any decline? Why didn’t they all rocket up? This is not making any sense. The volume on the day was almost twice the usual, and the average gain wasn’t even 1%. It was an odd one.
This does make sense however, many of the charts are tracing out readily identifiable cup-with-a-handle price patterns. See IAG, FSM, KGC, AUY, HL, PAAS, GDX and SGDM as clear examples of that pattern. This is typically a bullish development, and is seen as a potential set-up for the next leg up in prices. It will happen when they breakout into new high territory on expanding volume, and is an excellent time to grab more shares. The longer the prices trend sideways in the handle, consolidation pattern, the more market risk gets wrung out of the stock.
Price support is holding very well. The bullish case for the metals can be easily made by reading the charts, and we’re probably plenty safe to say that we can stay in these stocks, and go for a nice ride! That’s the hope anyways….
Okay, so I know the third Friday is options expiration day, and that it can result in big volume… but, I had NO idea that came all the way down to even a great many of these individual mining issues, too. And, why, since I started this in early April, did this not happen in either April or May? I’ll leave it at that….
We reverse nearly all of Friday’s gains… because Britain’s not going to leave the EU? Okay, whatever…….. And this changes everything concerning central bank policies and world economic strength…… yeh, right!
Here’s to your accumulation of real wealth!
Harold F Crowell