I had been saying, one or the other needed to happen. Either the miners would catch fire and a noticeable rally would erupt, or the metals prices were going to have to fall back and reset once again, as they can’t just rise and rise, as they had been doing, and not cause a rally in the mining shares… and, be a viable, credible metals’ price rally.
Now, we know what we’ve got, it would seem. The metals gave a lot back, as no rally launched from the goodly gain that appeared Tuesday.
So, what do the 15 charts have to tell us. I would think that due to the size of the move downward, the volume should have been pretty great. Let’s see…
Well, these fell, but on light volume: PVG, CDE, SILJ, SGDM, SLW, HL, RGLD, SLV and GLD.
These declined, but only on average volume: PAAS, AG, FSM, GDX, ABX, SSRI.
There were NO high volume decliners!
Surprise, I am mistaken, again! The average volume for all 15 was down by 16% from the 50-day average volume figure. This was no real sell-off of a serious nature, at all! Whatever ‘forces’ were in place to either take this market up, or down, are actually still in place. And, since those forces have been taking it up since the most recent low of 12/15, now, more than 1 month ago… that trend is not reversed by Wednesday’s price and volume action.
We’re still waiting to see if the low-volume price action with the metals and miners are going to ignite any serious rally, and they haven’t yet, but still might. And, so, we watch, and we continue to wait.
Here’s to your accumulation of real wealth!
Harold F Crowell