Wow! Another day of miner profit-taking, while the metals, gold in particular, did just fine. Silver lost some more. Well, I’ll take that back. Gold, in the form of symbol GLD, lost $.10 for an .08% decline. We’re hoping, of course, that price is still contained within the support level for every one, and that volume was still light, as it had been Thursday and Friday. It is beginning with tomorrow that we would like to see a confirmation, follow-through rally to launch on big volume. Will it? To our 16 charts!
Whoa! Well now… The first one is SLW, and it declined on still lighter volume, and is still comfortably within support. Just what we want to see! Any others like that? RGLD, GLD, SGDJ, SLV, SGDM, HL, GDX, PAAS, CDE, SSRI, ABX, FSM.
These fell on the same, or greater volume, than before: PVG.
Hmmm, closed on greater volume, but less than its 50-day avg volume: SILJ.
One has broken price support, but on lighter volume than Thursday or Friday: AG. We won’t concern ourselves for this one, as it has already been determined that a firm has been jaw-boning it down; trying to make a profit in it by shorting it.
Folks, this is an ongoing price correction within a bull market. There’s no other way to describe what is happening, up to this point in time. Whereas Friday’s average volume for all 16 was 19% below the 50-day average volume… Mondays was a whoppin’ 46% below that same average!
I see no threat to the bull market. I see it as telegraphing clearly and plainly that this is a price correction. We would be absolutely nailing it, if we get a new rally lift-off any day this week. It would be the confirmation of last Wednesday’s lift-off as a new continuation of this young bull-market.
Do you smell that? I smell money! That’s not to say that I could not be wrong, but until this market proves me wrong, I’m right on target still.
Here’s to your accumulation of real wealth!
Harold F Crowell