It doesn’t look good, does it? Gold’s off nearly $25. Silver’s lost a lot of luster, too… down 1.71%. Did the support level break, or did it hold??? I’d expect volume to be YUGE! That would be especially true if support broke. Let’s go see!
Well now! Let’s start with those losers that declined on bigger than average volume: PAAS, HL, SGDM, ABX, GDX, SGDJ.
Ooooo, gold, in the form of GLD got crushed… support let go, and volume was truly YUGE!!! Silver as SLV also broke the support I’d marked, but not by much, and the volume was bigger, but not especially so.
Then, I see other losers that did so on no more than average volume: RGLD, PVG, SSRI, FSM, SILJ, CDE, SLW and AG.
FASCINATING! Gold got CRUSHED. Silver broke support, but, get this now, not ONE; not even ONE of the miners, or the mining funds, either broke support, or had volume like gold did!
Something is UP. I don’t know what it is… But, the miners always ‘outperform the metals, whether to the upside… or, to the downside! That is, when the metals take off, the miners soar! But, when the metals are all done, and they go into a bear, the miners absolutely “take the pipe”!!! That’s not what’s happening here… at all! And average volume was up by 49%, too!
The Monday, November 14 level of support I identified for all the miners and mining funds is still in place… while GLD and SLV have blown right through it. This is actually a matter of what would have to be described as truly bullish significance,… I know… as odd as that may sound. But, I’m telling you, IT IS! Let’s see what happens over the holiday, overseas, and on Friday. This could get truly amazing. Many a trader is going to see what I’ve just identified, and they’re going to react in some fashion or another, but for this moment in time, that reaction would seem to be a positive one, to the UPside!!!
My call now is: Look out! I think that something good is about to happen, as today’s charts, in relation to the actual metals themselves, is only a bullish development. Watch for it now! O, and Happy Thanksgiving to all my readers!
Here’s to your accumulation of real wealth!
Harold F Crowell