Well, this day is one for the record books, or something. There was a huge spike in the metals prices. Looks to have been right at 8:30 am EST this morning… and, then something else obviously happened right at noon, because at 12 pm EST, they just came crashing right back down. In my trading account, there was more red than green by day’s end. Totally weird!
Anyhow, prices were up, and the miners were looking so good, and then, by day’s end, they were largely down, along with the metals having fallen back. I don’t even know why, but I’m sure the reason(s) will be coming at me over the weekend. It was not the day they lifted off, to go on to new high price levels. But, I’m willing to bet the volume had been greater than lately in anticipation of the big move about to happen. Let’s go see…
I’ve got decliners on average volume, as I look at: SSRI, CDE, SGDM and RIC.
Then, losers on lighter volume, as with: HL, AG, SLW, FSM, RGLD and SLV.
There’s been 1 to move all over the place lately, on massive volume for 4 days now, and today that was down: IAG.
They didn’t all go down, so I have these that rose on light volume: MUX, ASM, PVG, ABX and GDX.
Even some to rise on average volume, see: PAAS and AUY.
Finally, GLD, alone, fell on fairly large volume, which is the only one to actually exhibit that which I had expected.
I’m going with ‘wrong again’. I had thought volume would have been big due to the early move up, then the collapse that followed. The price did, but neither move, (or the both of them taken together in one day), produce extraordinary volume. In fact, average volume for all 19 symbols was light and 21% below the average of the past 50 days!
I would take this to mean that the metals, despite their price moves, up, or down… or, as in a case like today, where it was both up and down, no real excitement was generated at all so as to create significant volume either buying or selling. The summer doldrums are prevailing, and the price charts are saying that the most recent price rise, going back to 7/25, and recently reignited on 8/5, one week ago, is in the process of being digested in what is called, depending upon its appearance in the charts, a consolidation or correction. Looking at one chart comprised of the average of all 19 symbols, we’ve got consolidation still going on… and, whereas I had wondered out loud early today, if this might be the day it breaks out, it was not… but, the Bull is still intact, and is not in any danger yet. The direction of the next move should still be thought of as most likely being up, when it finally comes. And, frankly, the longer it takes to kick off, the more powerful it is likely to be.
Here’s to your accumulation of real wealth!
Harold F Crowell