Metals took quite a shot today, and so did their miners… especially CDE! Wonder what that’s about? Anyway, we’ve got to check the charts and see what was what.
Well, since they’re all decliners, the issue will be volume. And, since it was a smackdown, I would expect the volume to have been high. Let’s see…
So, let’s start with high-volume decliners: PVG, SILJ and CDE.
Well, there were low-volume decliners, too: PAAS, ABX, HL, RGLD, SLV.
As well as average volume decliners: SSRI, AG, SGDM, SLW, GDX, FSM, GLD.
The volume for each suggests to me that it was near as bad as I might have guessed. A look at the average volume of all 15 confirms that… it was only 8% higher than its own 50-day moving average of volume. No big deal at all.
Now, what was with CDE? It was its earnings report… it reported a loss of $8.3 million for the 4th qtr. As a reward, it was whacked for a 22% haircut in value.
So, things weren’t as bad as feared… we continue to watch and wait for the big opportunity.
Here’s to your accumulation of real wealth!
Harold F Crowell