Most, including those you mention were around their 50 day ma of volume which I chart. Of all the charts I follow, I did not see a single gold or silverchart with exceptional volume. Even WTZ which had great news today. If this were a turn around I would expect to see volume higher than it has been for at least the last month and close to high for a year. Of course, the volume doesn't always appear immediately. It is certainly possible that it will develop. The lack of volume was one of the reasons I chose not to commit today. Although short term trade could have been made, I am not in a position to follow the market that closely during the day
Also, I noticed that the thread, which in my judgement was never all that bearish is suddenly very bullish again. This suggests to me that the rally is just the expected relief rally. We will have to see.
I will concede that there were some nice bottom type formations in some stocks, but again, not as many as I would have liked nor sufficient in volume. On the other hand there are still some bear flags developing.
Lastly, It seems to me highly unlikely that after the carnage we have had, that this market is going to turn on a day. Seldom happens and if this is the bottom, or part of the bottom, there will be a retest. Unlike some I am not making predicitons or engaging in wishful thinking. I am looking at the charts and calling them like I see them. I am als concerned that the major averages will collapse and take the gold stocks with them. I could be wrong, but in the end the charts will tell the story.
Little joe |
