I noticed right off, earlier Wednesday, see my previous post, that miner price action was incongruent with the metals prices. Thursday, Friday and Monday, we had a similar thing to happen. Metals were up or flat, but miners were getting plugged. It was profit-taking, and I thought that would be brief. This day, Wednesday, we got the opposite. Gold was off, silver up a bit, but the miners did very well in price. Will today be the beginning of something big? If today was on any kind of goodly volume, then the answer is already yes. But, if volume was light, the jury would still be out, and we’ll need to wait, but tomorrow or Friday would be an ideal time to show its hand, and lift-off on serious volume. Will it? We can only hope and pray, but if it does, do not hesitate… be a buyer! So, what did Wednesday look like? To our charts…
We start with risers (as only GLD declined), that rose on average volume: RGLD and GDX.
Others rose on light volume, like: SLW, SGDJ, SGDM, PVG, SLV, HL, SILJ, ABX, SSRI, FSM, CDE and AG.
We’ve got one big volume riser in: PAAS.
Now, we’ve got those that rose on volume that exceeded recent downside volume, even if it wasn’t huge volume with: RGLD, SLW, PAAS, GDX and ABX. This may be very significant. It would be much more significant, if many, or all of them had. Tuesday’s average volume for all, which was to the downside, was 19% below the 50-day average. But today’s upside volume was greater, and only 12% under the 50-day average. We have evidences of a possible turn here, but far from a confirmation yet. If it would give us a confirmation, follow-through Thursday or Friday, that would be just so cool! May it come, may it come!!!
Two things… as I retire for Thursday evening at 10 pm EST, the metals are up overseas by a fairly nice amount… and, as I re-charted the average of all 16 symbols, I noticed that today’s candlestick is what is called a Bullish Engulfing type. Bring it on!
Here’s to your accumulation of real wealth!
Harold F Crowell