The hoped for explosive breakout has not taken place. The metals were down today, but not so much that it hurt. Only 4 of our miners were up, the rest were down.
In order to get a good feel for the day, I chart everything, and have a look at the price and volume action for the day, in relation to where price support is.
With volume lighter than average, I find those that gained: CDE, AG, ASM and RGLD.
While others declined, these also on light volume: FSM, MUX, HL, PVG, PAAS, SSRI, SGDM, ABX, AUY, GDX, SLV and GLD.
SLW lost on average volume, as did IAG and RIC.
Average volume for all of them was down by a whoppin’ 34%. It was a truly quiet day. August is here, and it may well be that we enter into some kind of a summer doldrums or something. The day’s declining price volume was way less than the volume of the previous 2 days, which were up days. This gives us another reason to believe again today, that we have a very good Bull Market on our hands. We’re in early, and we’ve made great gains. The rest of the world barely notices yet. They will. Then the big money will be made!
It’s what happens. When metals reach old highs, in an effort to breakout, and don’t… they’ll typically get turned back. As of 6:09 am EST, and since I was looking for, and we did not get, a breakout into new highs, though silver did, but gold did not follow through, it appears we’ll have to fall back. Should it continue to do so, and I again identify price support holding… I’ll say so, and another chance to add to, or take positions will present itself.
Here’s to your accumulation of real wealth!
Harold F Crowell