It’s Monday. January is about gone. We don’t have a gold rally yet. It’s been quite quiet. But, the best thing in the world is to pay close attention, on a daily basis, and just keep watching and waiting… because you’ll hardly ever make money any faster than if you catch a ‘gold rush’ in the metals and miners!
We made a lot of money here from last April 8, until we largely pulled out and took some serious profits in August (most trading profit I ever made in my life!) I put some back in toward the end of September, and that’s not done too terribly well, though it has recovered quite a bit. But, that doesn’t matter. I want something in place from off whatever ultimately will be the bottom, and scale back in more fully, when we identify another great run. So, how did last week, on the 27th, close out? While most were up, two closed down.
First, decliners on light volume: PVG and ABX.
Then, gainers on light volume: PAAS, SILJ, SGDM, AG, CDE, HL, GDX, SLW, RGLD, SSRI, FSM and GLD.
This went up on average volume: SLV.
Before I even check, I know that average volume was well off the norm. And, sure enough… average volume fell 35% below its own 50-day average. It’s as if everyone left early for a holiday weekend! We’re good for now.
A key point to keep in mind now, is that we have a market low that was put in on 12/15, and created a bottom from that date, thru the 23rd, before prices commenced to lifting. We can’t call it a rally, as there hasn’t been a lot of movement in most of our issues, nor has there been anything resembling rally volume that demonstrates serious commitment by traders and investors, to get into this market. It has been very quiet.
At some point, probably after another decline of some degree, that might leave the 12/15-23 bottom in place, it will be noted that a head-and-shoulders bottom, or perhaps a test of that low, resulting in a double-bottom, will give us the technical charting sign many will note, that will give them reason to move in. If anything like this scenario should happen… we’ll be there!
Here’s to your accumulation of real wealth!
Harold F Crowell