Wednesday 5/10, 5:30 am EST. Tuesday, the metals were off some more, but the miners were mixed, with the losses small. The ‘vibe’ I feel is that real effort is being made to hold the line, and preserve current support. Also, I see here, in the morning, that the metals are up a bit overseas, which shows that the metals, too, are also trying to hang on.
A look at the charts will tell the story….
Yup, what is perfectly clear is that the miners are putting in a stand here, even as the metals were falling further away! And, the volume was 38% below the average. Traders are holding their breath. Neither buyers nor sellers are active, and there was enough ‘risky’ buying on the part of some to try to select the bottom.
This IS a bottoming area, as it is the March support level, but… will it hold? It is 4 days old, with Thursday, the 4th, being the absolute bottom that started this latest effort to hold the line. Some are wanting for it to hold here, and have put some of their trading capital on it. I’ll update the timer and see if the indicators are signaling a reason to consider doing the same.
About a month ago, I said the technical measures of market risk were saying that… Stock risk was low, and precious metals risk was high. Today, I have the exact opposite in readings. Stocks lifted off and rallied, and stock risk is now high, while the metals have gone done, and metals and miners risk is now low! Since I find predicting so darned hard, I’m going to say this: I see the conditions in place for a stock decline, and a metals and miners rally… I do! Do your own diligence, and make your own decisions, but I think the time is ripe for the metals to possibly commence to shine once again very soon!
I’m just sayin’…………