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

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s