We can be thankful. The metals prices, bad though they were, actually improved by the end of trading Friday, so as to not result in the losses I was concerned about first thing Friday morning. How bad was it? We have to go to the charts. Gold lost $11. Silver, though, dropped more than 2%, by losing $.45 an oz.
I see decliners on no more than average volume, which is a good thing: MUX, FSM, DRD, SLW, RGLD, AG and GDX.
And then, there are those losers that only fell on light volume, which is a very good sign! CDE, HL, SSRI, PVG, PAAS, SGDM, ASM and RIC.
Then, you get those losers on big volume, like we did with: ABX, SLV and GLD.
We’ve seen this very thing before! The big names got hurt the worst. I’m talking about all the volume involved in the declines of ABX, SLV and GLD. These are issues the less astute metals traders deal with, and they’ll move a lot of volume when they get scared. The more astute professional types, who deal more with the specific mining issues, obviously did not panic. Their volume was average to low.
The overall average volume for all 18 symbols was 12% below the 50-day volume average. It’s still summer. We’re still in the doldrums, and volume is on the low side.
Further, and this is far more important, no price support levels, anywhere I can see, were violated by any of our 18 symbols. Not by even one! A couple got to the very support levels I had identified, and turned back up right from those lines, but none traded or closed in violation of support yet, and says that no threat to the Bull Market is seen yet.
As of 6:00 pm EST Sunday evening, overseas markets open again, and I’ll look in to see where the metals are at that time, and whether the price slide that commenced Friday had extended any further, or not.
Here’s to your accumulation of real wealth!
Harold F Crowell