CAUTION… when it gets THIS good, it’s usually about over, at least for the time being. What am I talking about?

I have AG… it’s already up 125%. I bought CDE, and now it’s up 106%. I have 2 more close to doubling in FSM at 90%, and HL ahead by 96%. When your performance starts to make you feel a little giddy… you MUST take PREcautions. I’ve seen reports of certain indicators for the metals being way overbought at this point. It is time to move up stops, and to consider taking profits… IF you are of a trader mentality. Everything closed in the green, meaning, everything  is at another new high again today! This, too, is cause to start having greater caution!

My take would be, if it is starting to get at all frothy, volume would have to be increasing. The sight of all these new highs, days in a row, has got to be attracting attention… is it? What do the charts say?

Uh, the first I see is price starting to go ‘parabolic’ on volume, as it is with: MUX, ASM, SSRI, CDE, PVG, FSM, IAG, SLW, RGLD, GDX, SGDM, ABX, SLV and GLD.

Less so with those that rose, but not on crazy volume, as with: AG, HL, RIC, PAAS and AUY.

My take: Caution should definitely be the byword at this point. Had all prices appeared to be going parabolic, and had all issues had a huge volume jump, I would call for an ‘all-hands-on-deck’, red alert. It’s almost certainly close to at least pausing for a breather… only the breaking of some terrible financial/economic news would keep it going much at all beyond this point. Pay attention: It is time to be on alert!

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

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