Tuesday, January 16, 6:17 pm EST. I wrote this morning that all the good I had seen leading up to Tuesday morning had vanished. I wondered, What had gone wrong? It should have led to a pretty rough day for our miners… and, then, a reader, who tracks NUGT intra-day, wrote me a couple of times to tell me of the strength it was exhibiting and how well it was doing. And, by the end of the trading today, the price of the metals had about fully recovered. It’s nUtZ, I’m tellin’ ya!
Anyway, I always go about getting my head back together by looking at the charts. Price and volume don’t lie, and they pretty much always have something to say.
And, sure enough, the miners, by and large, had a fine outing today. And, that, on a day when the metals themselves hardly moved. Gold up a bit, and silver off almost nothing. Four issues were off some, but the remaining symbols I track, the other 12, did just fine. The volume for all 16 was 36% above its own 50-day average, which is a feat it has not been doing lately.
Here is what is working here, price is rising rather handily, and volume has expanded considerably. There’s been some unsettling volatility, and it makes for some nervous trading, but I’m perfectly content to be letting my long-term investments in the sector ride. Overhead resistance has been being challenged, and has also been being overcome!
There’s very little overhead resistance left… see the last September top, and the August ’16 tops. that’s all that is left, and the distance left to clear this next top… is only something like 1% away in the price of gold, and if we see the miners catching up and outperforming the metal on the way toward that breakout… it’s another sign that a real rally has been in the works since the Dec 12/13 bottom I had marked.
It’s shaping up quite well, and still I don’t hear anything from any others about this, not that I’m well connected, or have other sources. I do my own work, and if anything comes my way, I consider it.