Wednesday, 5/3, 9:01 pm EST. Big hits in the metals. All the miners are down. Damage Control… REPORT! I’m going to examine each chart, and the average for all 16 symbols. I’d have to guess that the nearest-term support I never expected to hold, was shattered, and that volume was likely high. That said, it is time, now, though, to start looking for support and technical measures of risk to begin saying that the bottom is near, or at hand.
They all lost, so we’ll list them by their volume, beginning with decliners on average volume: RGLD, HL, SLW, GDX, PAAS, ABX, AG and PVG.
And, losers on big volume: GLD, CDE, SLV, SSRI and FSM.
Even decliners on light volume: SGDM, SILJ and NUGT.
I am shocked! First of all, most did not break support… and, second, volume wasn’t near what I would have expected! In fact, the average volume was 11% below the 50-day average for volume. Volume was light? And, much support held, and was not broken??? Shocking! What’s going on? What does it mean?
I’ll enter data into the timer, and check other technical measures here and there, and see if anything more can be made of what happened today. The metals took quite a hit, but the miners, for the most part, held up amazingly well! Perhaps they’ll require more pain, to shake more out of their positions yet, before the bottom will have been put into place?
The ideal circumstance is typically the high-volume wash-out, where traders give up, and vomit their shares out for whatever price they can get for them. Nothing like that has happened here, that’s for certain… not yet.
From the timer, OEXpert 7, F1 = 10, has signaled. F2 = -4, has signaled. F3 = 42, and has a way to go. F4 = -2, and is getting close. Another day or 2 perhaps. F5 = 62, and also would require a couple of more days, at least. F6 = 21, and like F4 and F5, could use 2 or 3 more down to sideways days to get to their respective signaling place. It’s possible that the bottom is quite close at hand, and could conceivably be upon us this week, or early next. Let’s be vigilant, watch and wait… it’s time to start paying closer attention!
Here’s to your accumulation of real wealth!
Harold F Crowell