I looked in several times today… the metals were down, but half the miners would be up, and those that were down, were off only the tiniest bit. That was looking very bullish to me.
Now, 45 minutes after the close, I see the metals are up somewhat, meaning prices recovered… either while the stock market was open, or possibly after it closed at 4:00, since the metals’ market will remain open ’til 5:00.
But, what the? So, I now see the metals up a bit, after being down all day, but the miners had been doing well… and, except for 2, the rest all closed down!!! Go figure. I’m going to say that this was an outside day, where basically nothing happened, but that the volume will reflect average to lower-than-average for the day. So, we’ll go to the 19 charts to see what they might tell me about Friday. Was it actually a significant day?
Having 2 to close up, I see that these rose on about average volume: ASM and CDE.
All the rest declined, but on what volume? First those on real light volume: MUX, HL, SSRI, AG, FSM, SLW, PAAS, RIC, AUY, SGDM, RGLD, GDX, ABX and IAG.
We’ve got one decliner on big volume in: PVG.
And, what’s this? SLV closed down on only average volume, as did GLD. So, there’s our answer. The metals were down at 4:00, but later recovered, and they closed higher at 5:00! This means the decline by the 4:00 pm close of any miners is relatively meaningless, as the metals made their upward move after 4:00, when the mining shares were no longer trading!
Incredible! Yes, the metals were off, but came back… this still serves to make for a very bullish case in the metals and miners still! The market is showing incredible resilience to date! The average volume for them all was down by 1/3rd!
For the past 8 trading days, silver has gone nowhere. And, for the past 7, gold has been in a bit of a decline. However, the miners have all been looking very good. Some continue to trend upward, while others have marked out a sideways consolidation pattern.
Those still up-trending are: ASM, CDE, HL, AG, PAAS,
While those trending in a sideways consolidation are: MUX, SSRI, FSM, PVG, SLW, RIC, AUY, SGDM, RGLD, GDX, IAG and SLV.
Only ABX and GLD, the actual metal ETF, have taken on a corrective downtrend pattern, towards what looks to be a level of price support. There is, as of yet, no threat to this young bull, and I fully expect it will settle out for a bit longer, and resume a new bullish advance, but we will remain vigilant, and call for the selling of shares, if market conditions should change in such a manner as to warrant it!
Here’s to your accumulation of real wealth!
Harold F Crowell