Hey, I don’t know. It’s clear though… the metals hardly moved, but the miners took a hit. What’s with that?
We need to examine the charts to see if there was any volume conviction behind the selling off of the mining shares. It shouldn’t happen when the metals hardly move… so, let’s take a look. Charts… talk to me!
I start with anything that declined, but on light volume, as with: GLD, GDX, PVG, HL, PAAS, SLW, RGLD, SGDM, SILJ, ABX, SSRI, CDE and AG.
There were gainers, on light volume, as with: SLV and FSM.
Stuff that fell on average volume was: SGDJ…
So, what we have was a down day on 23% lighter volume than the 50-day average for all. In other words, this is more of that backing-and-filling type corrective base-making action still. Traders are dying out there for something to happen, and they’re slowing getting away from this market… and, it is being lulled to sleep.
As long as nothing happens, and the metals’ prices and miners continue to do essentially nothing, the longer and stronger the ultimate base that results. We can only hope that at some point, out in the relatively near future, some tremendous event and piece of news kicks off this market as a catalyst, and makes it launch once again. In the mean time, we continue to watch and wait.
Here’s to your accumulation of real wealth!
Harold F Crowell