I saw it happening Wednesday morning. I wrote to tell everyone to protect their capital. I hope you had stops in place, and exercised discipline. The lines I drew for support for nearly every issue were clearly violated. Simply because I wanted to, I had sold a lot Tuesday, one day before, only because I wanted to lighten up the number of positions I had, and take some trading profits. It sure looks like a real good call now, doesn’t it? I wrote it all, it’s just a few posts down.

I’m going to have to go with a simple call here. Prices fell hard, therefore, volume almost surely increased greatly. That is a very good thing. We get to a low-risk entry point when a market declines, and I want to buy in for a whole lot more! It’s a Bull Market until it isn’t… and, this kind of action doesn’t turn it from a Bull to a Bear. We’ve only taken out the 50-day moving average, not the 200-day. It’s nowhere near its 200-day yet. This is a healthy correction. They can hurt, but they are the stuff that make for good entry points, to build positions in the issues you really want. To the 16 charts…

On big volume, we see these losers: CDE, RGLD, SLW, SILJ, PAAS, FSM, SGDJ, HL, PVG, SGDM, GDX, ABX and AG.

On average volume these fell: SSRI, GLD and SLV.

The average volume for all 16 symbols rose by a whoppin’ 87% above the 50-day moving average for volume. That was a lot! Moves of this magnitude usually precipitate a bounce. And, violation support usually causes that prior support to be a new point of resistance. If it will bounce from here, it might be awhile before we get our signal that risk is gone. In the overseas markets, as I type, 3:20 am EST… gold is up $1.40 and silver $.07, that’s not a bounce.

Let’s hope for still further downside, a wringing out of the last of the risk measured by the timer, and for a great opportunity to back up the truck! Nothing would be better than to see prices fall further, until all 7 indicators have been satisfied. It could happen within another week. If the timer calls it, I’ll shout it out!


6:40 am EST and prices are flat, going almost nowhere. What will the miners do? Watch for a soon buying opportunity… I hope!

Here’s to your accumulation of real wealth!
Harold F Crowell


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