The metals rose well. The miners were off to the races. Then the Fed announced, and the metals backed off a bit, but the miners “took the pipe“! I really don’t get that. Even now, as of about 9:00 pm EST, they’re up a bit more overseas. O, well…. I wonder whether the charts will give me any insight. I’d expect the volume to actually be rather high, which would be a negative at this point.
Well, we had silver rise in the form of SLV on slightly better than average volume; a plus. GLD actually rose on a lot of volume… another plus. But, after that…
We have decliners on average volume in: HL, SGDM, SILJ, PAAS, CDE.
Decliners on big volume in: GDX, ABX, PVG, SGDJ, FSM, RGLD, SSRI, SLW,
Well, AG did rise, and on big volume, as well.
Average volume for all rose 36% over the 50-day average for all, and most created what would be referred to as a Bearish Engulfing Pattern by their Japanese Candlestick. For the miners, this was not a good outing. It was a strong decline on a lot of volume… and that, on a day when the metals did quite well.
It’s not as if price support was broken, so we wait to see what might come next… but, you can’t have the metals rise for long, and the miners to still go down. It’s the metals that drives the miners, and not the other way around. So, as long as the metals do well, the miners will be back.
Here’s to your accumulation of real wealth!
Harold F Crowell