So, you can see that the metals, themselves, went almost nowhere today, right? But, the miners had a very fine outing; thank you very much. That would not likely happen if it was believed that the ‘dead’ metals market, that didn’t move today, was more likely to go down in the immediate future. What we’re looking at is a ‘hope’ movement in the miner prices. So, let’s see if there was any volume behind today’s move. I wouldn’t expect any, and would be quite surprised if there actually was.
I’m looking at gainers on light volume in: GLD, SLV, RGLD, SGDJ, PVG, SLW, SGDM, HL, PAAS, SILJ, CDE, SSRI, FSM and AG.
Some also rose on average volume: GDX and ABX.
Perfect! This is what basing is supposed to look like. The market seems to just ‘go to sleep’. There’s neither any serious buying, nor is there any serious selling. Shares are trading hands from those who have had it, and don’t see any gain ahead, into those hands that are just wanting to accumulate around a lower price, as they’re quite certain there will be profit ahead in the future. The longer this process goes on, the better the base, and the next launch ought to be! This new base is at least 5 days long now, and by other charts is 7. The timer is all-in, saying that risk is wrung out now, and that a low-risk market entry opportunity would seem to be presenting itself. One could either be a buyer now, or wait to pay higher prices after a lift-off on volume is actually taking place. I’m not advocating one or the other, as either will fit one’s risk tolerance. Those wanting to buy now, could, and would place tight stops under current prices. Others would wait, and let the market tell them to buy, when a great many others are just stepping to buy themselves… what’s your style?
Here’s to your accumulation of real wealth!
Harold F Crowell