Today seemed to be a perfect ‘inside’ day, where the metals prices went just about nowhere, and the miners didn’t move much either. It would appear that a perfect consolidation is taking place… but, it’s necessary to look at the charts to confirm that opinion. Will they say anything different? Two closed up, all the rest were down… I’m thinking volume should have been light again.
To the downside, and on light volume were: CDE, AG, MUX, HL, SSRI, PVG, IAG, FSM, SLW, RGLD, SGDM, PAAS, AUY, ABX, GDX and SLV.
There’s one downer on big volume: ASM.
Two gainers, on light volume: RIC and GLD.
The average volume for all 19 was down by 44%! It is… it’s perfectly bullish consolidation/corrective action going on, and no threat to this Bull Market is anywhere in sight yet!
There’s been 10 days/2 weeks of this action. May it continue until all risk has been wrung out, and then, off to the races!
As of 6:39 am EST, gold’s down $7.00, and silver’s off $.15. At some point, this consolidation might become a true correction. If it does, expect price declines in our miners, and volume to pick up. Will support then hold?
It’s only a little after 8:00 am EST, and the metals are looking like they’ve fallen out of bed! Gold’s now down nearly $14, and silver’s off $.40. We have indeed gone from a consolidation, into a correction. watch your stops, and take profits if they are hit!
Here’s to your accumulation of real wealth!
Harold F Crowell