They'll come. Just a bit longer. Those that ran away in May will be gravely disappointed. But, they'll return to buy back the same stocks they sold, but be paying a higher price to get them back.
Yesterday's action in the SLV could very well have been an exhaustion bottom. Don't hold me to it as we could see some follow thru today and early next week. I feel that with yesterday's volume spike (759.4K shares) we're getting our bottoming signal. Look at those previous red vertical volume spikes for past bottoms. But, we still want to see SLV close above its 8-dma (blue line), and for added measure see the 8-dma cross over the 13-dma (red line).
As for the HUI. Adam Hamilton reminds us that the HUI relative to its 200-dma is an indicator to follow. When it's 40% or so above its 200-dma it's in a sell zone and when 95% below its 200-dma, it's in a buy zone. Yesterday, with the HUI's low at 321.23 we saw this ratio (321.23/330.99) touch 97.1%. The Ratio closed at 98.3. If you're one of the prescient minority and sold your metals stocks in mid-April then you should be getting edgy, and - anxious!
I am not one of those with the prescient forecasting gift, and am fully invested. My portfolio of predominantly silver jrs/explorers touched a cyclical peak on 4/16. As of the close yesterday I was down 8.3%. On a closing basis over that same frame the HUI was down 11.3%.
I guess it's just a matter of how long you can hold your hand over the flame.
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