So, it was necessary for me to be away for a bit… what has happened? Things were up, then they went back down… again. I’m going to dive right in, re-acclimate myself, and re-apprise the situation. Up front, to the best of my knowledge, this is still a bull market, and it may still be just more backing-and-filling, while building a base from which to launch. But, I don’t know this, so it’s necessary to examine all the charts. To the charts we go!
We have a gainer on big volume in: SLV.
Then, we’ve decliners, also on big volume in: HL, GLD, RGLD, FSM, GDX, PAAS, PVG, SGDM, SSRI, ABX, SLW, CDE and AG.
These fell on average volume: SGDJ and SILJ.
Okay, so, other than SLW, for reasons unique to it, all fell on large volume, but only back into their respective bases, which have been under construction for at least one entire month or 5 weeks. Other than SLW, support is still well in hand.
Now, VOLUME was UP by 106% on Thursday, which I see as a good thing! As long as support holds, big downside volume is still the flushing out of shares, from weak hands into strong hands. Think about it. Who is selling now… maybe some who had been recently buying, expecting the move to commence after election jitters had passed, as I also would have thought was going to happen… but, also those who were expecting the same, but had been holding quite a long while, and wanted to take advantage of said rally for the purpose of unloading.
So, look at it from the other side. Who would be the buyer? Why would anyone want to be an active buyer here? Can you think of any good reason? I can’t. Except those that believe that this is still a young bull market, and technical price support, in the form of a long base is under construction, and they believe that these are the best prices we’re going to see for a long time… which will be proven after a true new rally commences to kick-off; which it appears has not happened yet. But, I still think it will. There will be a catalyst out there, that will launch a new bull rally. Wait for it!
Here’s to your accumulation of real wealth!
Harold F Crowell