Tuesday, July 4, 7:30 am EST. I thought sure, when I saw what happened to the metals on Tuesday, that the miners prices would be ‘crushed’. In reality, prices were mixed, and none closed so much as 1% from where it had started trading. I was mildly shocked in wonder, asking myself how that could have been. You too?
In any case, I’m going to examine the charts, which should look just fine, I am expecting. And… I’ll add this new data to the timer, as I am of a belief we will be looking at our signal. As soon, as I’ve done both, I’ll get back and add my observations to this post.
Well, Gold fell right to its May 9 and 10 support level, on considerable volume. Silver has done precisely the same!
I see quite a discrepancy between the price and % of price change on my brokerage platform from what I am seeing in the stock program. In the program, and on the charts, the mining shares were badly hit, and by large amounts and high percentages! The price and % of change numbers on my broker’s site appear to be in error.
Now, the miners, while they took it fairly hard, and generally on higher volume. That volume must still be deemed to have been rather light, and the prices are nowhere near as threatening to their respective price supports as the metals themselves. Only HL broke down through a nearby price support of its previous 6/16 price low… all the rest are still above theirs, and looking pretty good.
Updating the timer… The price of GLD has fallen through its first lower trading band, and is sitting just above its second lower band. That is a signal. F2 is at -7 and has signaled. F3 is at 13, and could easily attain 10 and signal with one more day. F4 is at -3 and falling. It, too could signal with one more down day. F5, at 34, is now under 40, and it has signaled. Finally, F6 reads a 5, which is under 10, and it is re-signaling.
I’d say we’re getting very close. Let’s see what Wednesday the 5th will bring… and, note this, too… stocks are fast approaching a low-risk market entry signal, as well. I could see stocks giving an ‘all clear’ before the week is out!
A quick study of the GLD chart, we have bullish higher lows in December, March and May. We have a double-top with the April and June highs. We are now at the May lows, which is a price support. If it broke, that would not mean the end to any bullish hopes out of the December bottom, but would certainly put doubts in the minds of some. I am ever the eternal optimist… I’ll be looking for an upturn anytime now.