Are you kidding me?!?!? Who did not know that the Fed would raise interest rates today, and talk up the possibility of more in 2017? The idea that because the Fed raised by a quarter point today, and spoke of as many as 3 more in the next year, and that this somehow took metals by surprise makes absolutely NO sense whatsoever! So, the metals actually got smacked, and the miners took quite a hit… and maybe even broke their price support. Let’s see. But, I’m still a bit frosted. It just makes no sense in the least that the metals should have taken such a hit after that news, as if it were somehow a surprise; none whatsoever. O, well. To the charts!
First of all, other than SSRI, none of the other miners broke their Monday 11/14 support. Amazing! So, what did they do?
Some fell on average volume, as did: PAAS, CDE, SGDM, AG.
Certainly, some fell on big volume, as these: HL, SLV and GLD, RGLD, ABX, GDX, FSM, PVG, SLW and SSRI.
And, a light volume decliner in: SILJ.
The average volume for all 15 was up by 72%, which is not inconsiderable. It is still absolutely amazing that the miners should even be holding up as well as they are… truly amazing! Why would they do that? If the metals are to be so hated, and to be in a whole new bear market, it makes even less sense that they should be holding up as well as they are.
In any case, there will come a day, when the metals will shine again, and the miners will take off on a tear. As I am watching this market and these issues daily, we’ll be right there when it finally does happen… and, on that occasion, we’ll be ready to join the fray, and go for that ride!
Here’s to your accumulation of real wealth!
Harold F Crowell