Tuesday, March 13, 8:13 am EST. So, we’re getting whacked again with another snow storm. Whohoo!!! So, where are the metals and miners at?
I wrote nothing of Friday or Monday… because there was too little to bother to write about… and that is GOOD! Whenever a market goes dull with silence, so much so that seemingly no one is even paying any attention to it anymore… risk is silently ‘draining’ out of that market. How do I know that’s happening? Volume. Volume is drying up, and price is moving sideways along support on dwindling volume. This is the windup! Get ready for the launch.
I’ll update the timer, I’ll review all the charts… First, the charts. Gold is going sideways along the support level bottom of a channel. This channel is even tightening a little, as a wedge would do. We must stay right on top of this, and pay closer attention… opportunity may come knocking soon! And, silver? Same thing!
Get this now… Gold is outperforming silver, and both are outperforming the miners. This would be bear market activity, but it is also risk-depleting activity within a bull market, and that’s what we have going on here. Only if everything were to break down, and the ‘wheels come off the cart’ here, would we have to declare a bear market is actually the right interpretation of what’s going on. I don’t see that here. I see risk leaking out of a bull market… prices going sideways within a channel within a bull market.
And, the miners? Same kind of action. Support was challenged, even bent, but did not break, back on Thursday the first… since then, that support level has held. Prices have pretty much gone sideways, and volume has lessened. It is setting up for what may well be a beautiful rally to come. That’s my hope, and I see plenty good enough reason for it, setting up in the charts. Ever the optimist? I am! But, I think it’s justified. Now, let’s see if it proves me to have been correct, or mistaken.
12:21 pm EST update. FWIW, I updated the timer, and it is much closer to its lo-risk entry signal, than it is to anything saying there’s high risk. This is a place where a speculative position could be put on, if one were of the gambler-type, and just kept it on a short leash… put a tight stop under it. I won’t, but I could see someone trying to. The risk/reward ratio looks like it could be quite positive.