Gold slipped back another $7, and silver dropped another $.09. Checking in on the miners though, there was considerably more pessimism. I don’t know, so we’ll have to look in on the volume, to see if any great amount of fear is creeping in yet.
The first one I see was down on only about average volume, CDE, as were these others; SLW, HL, IAG, AG, MUX, ABX and GLD.
Others only fell back on light volume, as with: ASM, SSRI, PVG, RIC, FSM, RGLD, PAAS, SLV and AUY.
Losers on big volume: SGDM and GDX.
Well, the average volume of all of them was nearly identical to Friday’s, and that was not a fearful day either. Many are now near or right at what I perceive to be the first real place of technical price support. So, now I need to update my timer. Check with indicators at stockcharts.com, and at another new site I’ve recently found. I’d like to get a feel for whether there’s reason to think this should hold about here, or if maybe it’s time to just observe my stops and bail, taking all the profit that is left, and wait for another opportunity to get back in… a dangerous decision. What if I don’t find a low-risk entry, and this market were to turn back up on me, while I’m not in? See what I mean?
I have no doubt this is a new long-term Bull Market, but the risks and dangers can be great and considerable. When fear should come in, the declines will be steeper, and the volume far greater. Such an event would likely take place when traders believe price support has failed. Obviously, they don’t think so yet, nor do I.
Tomorrow could be telling. Let’s see what Tuesday morning will bring.
A look in on all of them at stockcharts.com, using those technicals I’ve set up to watch them confirms that they are at the first level of support, but it’s not the only one. This is the first, and perhaps the weakest. It might likely break this one, to decline to the next level, which would be much stronger than this one. further, as I update the timer, 3 of the indicators are very close to signaling low risk, while the other 3 would require considerably more. As I am an investor, I will advise traders to sell, if the first support fails, if they want to secure profits; but I will hold out, and hope to catch a low-risk entry signal to actually add to my positions, as I am quite certain this is still the very early stages of a huge Bull Market, and I want to be aboard for when the really big moves come… as I believe they will!
Gold and silver have been staging something of a rebound overnight, as the fall to support would have suggested. Should it prove resilient, the market can launch from here, if it truly catches a bid, and starts to go… many more will climb aboard to push it higher. Should it be bought? Watch for a larger price and volume move to the upside than we have been seeing lately, to say Yes to that question.
Here’s to your accumulation of real wealth!
Harold F Crowell