Tuesday, 9:18 pm EST. Well, half the symbols closed up, and half the symbols close down! Where are prices in relation to support, and is it still holding? How many days has it been now?
How ’bout silver! Down 12 straight days in a row! That ever happened before, I wonder? Silver needs to turn from right here, now. It is right at the last vestige of the March support level as of today’s close.
Support has been holding for 6 days now! And, volume has been drying up to nothing. The average for all 16 issues was down by 39%.
I’ve heard there will be some Fed-speak Wednesday that should set it off in one direction, or another. I’ve also seen a report that may have some bearing… and, I MUST update the timer in the morning.
“We begin today with a little good news for precious metals bulls…
Investors are dumping gold-mining stocks like never before.
According to Bloomberg data, investors pulled $778 million from the VanEck Vectors Gold Miners Fund (GDX) – the world’s largest gold-stock exchange-traded fund (“ETF”) – in the week ending April 28. This is the largest weekly outflow on record.
Investors also pulled $217 million from the SPDR Gold Shares Fund (GLD) – the world’s largest pure gold fund – last week. This was the largest outflow of any commodity fund over that period.
Why is this good news?
As longtime Digest readers know, precious metals – perhaps more than any other asset class – are susceptible to dramatic and rapid swings in investor sentiment. And we can use these extremes to our advantage…
When folks are downright giddy about gold and silver, it’s often a bearish sign… It means the rally has likely gotten ahead of itself, and at least a short-term correction is likely. Likewise, when investors turn bearish, it’s often a great time to buy.
Last week we noted that the sector was getting a little “frothy.” According to the U.S. government’s Commitments of Traders (“COT”) report, speculative traders had become incredibly bullish on silver, in particular. We warned that a further pullback was likely as this sentiment extreme wore off.
Today’s news is a sign this is already happening. And while we’re still not ready to give the “all clear,” we’re one big step closer to the bottom.”
This makes me want to get data into my timer, and get it updated asap! We’re at support. Sentiment has turned, and now… will the technical indicators render any signal?