I saw the possibility of it this morning. I saw the metals prices off from Thursday, and they looked to be down enough to cause some pain. And, sure enough, the miners were perceived as having gotten off to a false start. I feared as much, as the volume just hasn’t been there, as I had been saying all along.
Okay, so, let’s start with those losers that did so on big volume: PVG, SILJ, AG, GDX, FSM, SSRI.
Some fell on average volume: SGDM, CDE, ABX, SLW.
Others only declined on light volume: PAAS, GLD, SLV, RGLD, HL.
Average volume for all 15 was only up 9% over the average, and so, for all the price decline so many experienced, the volume wasn’t really so large as to say that folks were giving up on the idea of a rally… not that one has ever actually ever confirmed for us yet, and so, continued choppiness can be expected until an actual trend emerges once again.
Gold reversed to the upside, and has been meandering its way up since it bottomed 12/15, but there’s never been any real conviction behind the move. It needs to settle back… shake more holders out, and put in another bottom perhaps… but, by my measures, it’s not risen so much as to be truly overbought yet either!
What’s a trader to do? Well, if you did buy recently, you’ll just have to be vigilant, and be ready to sell, if your nearby stop should get hit.
Here’s to your accumulation of real wealth!
Harold F Crowell