Wednesday 5/17 9:05 pm EST. Well, the metals have been going in the right direction since the call one week ago. I guess we can thank the President for it… everything’s coming off the tracks, as he is such a ‘bad’ president. Don’t think so? Just watch the mainstream media. I don’t. They’ve had it in for him since the day he announced he was running. In that respect, I pay attention to 2 things… what did he say that he would do, and what is he doing. In those 2 areas, he’s been trying mightily to deliver.
In any case, our precious metals holdings are prime beneficiaries of all this brouhaha.
What I’ve been looking for, however, is for volume to swell, so as to make me a believer in this ‘rally’. Was there any today? Yes, and no. Volume clearly expanded well over what it was of late, but only enough so as to be 11% greater than average. I’m going to have to give it a plus, though, as today truly was a serious expansion of volume.
Now, though, we are approaching an area of overhead price resistance. There are traders who will be wanting to unload higher priced stuff they bought some time ago, so as to break even. It’s very important to watch how that will go. It means volume will expand, but will price continue to rise, consolidate and mark time; or might the selling overwhelm what tepid buying there has been, and send prices back down some?
That’s what we’ll begin to watch for next. Should volume increase, and prices rise, that will serve as a confirmation of what began last week, as being real, and we will want to get aboard for any breakout that overcomes the overhead price resistance.