Saturday, August 27, 2022. A friend emailed me, inquiring about any ‘good’ silver stock symbols. I knew I had not taken any serious look in months, so I determined to do a little catching up. What I saw was truly shocking!
First, I had to retrain myself as to how I even constructed my usual watchlist of symbols. I got thru that and made a new list… I only want to look at those that are listed on the NYSE, AMEX and NASDAQ… all others are off in the ‘sheets’ somewhere and are often not readily available to buy and sell. Of the more than 100, there were 65 exchange-listed issues. I then charted them with a year of data… Yikes!!!
To say that precious metals miners are in a severe Bear Market at this time would be an understatement. For the most part, these have been “crushed!” But, as anyone will tell you, that can be a truly good thing? Why? Simple, the lower they go, the greater the future opportunity! Somewhere out there, these things are going to respond to a whole new level of buying that is going to send them upward by a tremendous amount… and we want to be right there when that happens.
I haven’t sold any of my metals holdings, whether bullion, coin, numismatic, or any kind of mining shares. None! Whenever I begin to see this sector to respond to favorable conditions for them, they’ll lift off, and I’ll seek to greatly add to them… and hopefully, be right on top of that situation to tell you about it when it comes!
So, here is what I told my friend… Of the 65 symbols I charted, only 3 among the gold and/or silver miners had any appearance of ‘health’ whatsoever. All the rest were looking more like they had been left for dead! But, before I list the 3 symbols, it is most needful and helpful to say this: Many give an appearance of having bottomed, or are bottoming, and look to be putting in a base around their lows! This is so incredibly meaningful.
When a base is being put in, or has been put in, it then becomes an area of price support well worth keeping an eye on, to see if and how long it might hold, or if it will actually be broken down through to form an even lower low. Being crushed like they are, and seemingly left for dead… this might be the actual bottom being put into place… or, it may not be, but that is what we need to be looking for, because that is where opportunity is to be found… when an asset is hated, left for dead, and selling seems to have dried up… or there’s been a vomiting of shares in a capitulation sell-off… then you want to look for the upside reversal. We may well be there.
So, is there any good-looking issues among the 65 I chart? Three show a sign of life. One is actually showing some strength! You just know there’s some story behind that one. Here they are: Take a look at TRX, Tanzanian. By the name, it might be Australian? I haven’t checked. There is something like a glimmer of hope with AGI, Alamos Gold. Unlike others, all of which are stereotypically in a bear market price chart pattern, AGI is flat and neutral, neither lifting… or dying. I have no understanding as to why. The third is AUY, Yamana Gold. Stronger than AGI, by a bit, it actually shows signs of semi-life, unlike nearly everything else… 60 or more, all of the rest practically look as if their world was coming to an end!
I had learned a valuable thing or two along the way, years ago… I also sort the watchlist by Market Cap and look at them from the largest to the smallest. The Big Boys throwing institutional levels of money around, typically have to buy into only the truly largest of the miners, and when they do that… you know what they are thinking, and that they believe the time has come to reinvest in the sector. All the miners will run at the same time, once they hit their stride in a newly emerging Bull Market, and it is well worth participating. We want to be there when that happens.
When I think it is upon us, I will say so. I’m going to update the timer now…and perhaps post briefly about that again soon. Who knows, maybe detect the bottom of the bottom???
Harold
Gold Stock Trader 