Gold closed down a lot! Silver closed down… a lot more! Yup, gold off more than $40 an oz., and silver by more than 5%. It’s truly ugly! And, the miners, well a good many of them got clocked for double-digit, one-day losses, greater than 10%!
I was saying this could happen, called it as it was setting up, and warned to sell, even in advance of it. I understand. Selling can be hard. I get that. I didn’t sell, but my intention is to add more!
Without even having to guess, I can tell you that I am certain volume will be high, perhaps very high… but, if it was extremely high, say 200% higher, then we’ve probably witnessed the bottom being put in. Let’s look to the charts and hope they’re communicating… and we can ‘hear’ them.
Well, losers, on big, big volume are… all of them? Let’s see: GLD, SLV, RGLD, SGDJ, SGDM, GDX, SLW, SILJ, PAAS, PVG, SSRI, ABX and FSM.
Down on only average volume: HL, CDE and AG.
Volume was BIG! It was 129% bigger than the 50-day average for volume. This is a lot! Was it enough? Maybe. Next meaningful price support is coming up for most at their 200-maving average in price. A few have broken that, and a few are still pretty far above theirs. But, most are getting close to theirs.
It’s still technically, a bull market. Few have pierced their 200-day moving average, and that mov. avg. line for all is still up-trending. I’m of an opinion that this is a temporary matter, and that it will right itself rather quickly. If you wanted to buy at lower prices, we now have much lower prices! I’ll update the timer, and see what kind hope it might afford.
Another point of interest; most are well above where I first bought in on Friday, April 8, and even though I put a lot back in on Monday, September 19, and those positions have lost to date, I bought in at prices considerably lower than where I had previously done much selling, and taking profits. So, I’m not sweating here, I can calculate it later, but I should still be pretty much ahead of where I had first started 6 months ago.
Updating the OEXpert 7 Timer, with just a couple or 3 more days down here, or even lower, if, say the 200-day moving average had to be tested, it would give a real good signal. I’d say we’re already much closer to where we’ll lift-off from, than any further danger that exists. Overseas trading has started, and the metals haven’t moved hardly at all. The slide has not extended from our earlier close. Let’s look in again Wednesday morning, and maybe consider adding shares!
Here’s to your accumulation of real wealth!
Harold F Crowell