Today was a tough one! Fear of rising interest rates is all it was. But, it smacked our miners hard!

I’d expect volume to be pretty big. I don’t expect support levels to have been broken, but, we’ll need to go right to the charts to find out. What will they be saying today?

Let’s get right to it… losers on big volume: CDE, SILJ, FSM, PVG, HL and GDX.

Those that only declined on average volume: SLW, GLD, SLV, PAAS, SSRI, ABX and AG.

Well, we have those that only fell on light volume, too: RGLD, SGDJ and SGDM.

Average volume for all 16 was 56% greater. That’s pretty strong. I like that. I want to see a lot of weak holders flushed out. I don’t expect a lot of decline, but I’ll update the timer, to see if I can get a feel for how far it needs to slip back, before the 7 indicators within the timer say risk has been wrung out again. I’m thinking that it should result in a tradable bottom fairly soon.

I was correct in that volume was high, and NO price support levels have been violated. The Bull remains easily intact, so far!

It should be added, that from a purely technical perspective, most of these issues, and a chart of an average of all of them, are putting in a topping pattern, and now we must watch for the possibility, the potential, for a considerably greater decline, if this pattern does not get altered in the near future.

Updating the timer, I don’t think there will be any long hard decline, or that the recently established support will fail. It remains to be seen, of course, and my opinions are subject to change without any notice or reason whatsoever!!! According to the OEXpert 7 timer, it would appear that this ought not to be a problem, as the indicators could all reset rather speedily in a short period of time. I found it most interesting that stocks, as I was looking at charts, appeared to be far more hurt than the metals… if that is true, then I would think that some money actually fled into this sector, from out of stocks. This needs to be further examined! (but, I’m going fishing tomorrow!)

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


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