Pardon the low posting volume. I am in NYC, having moved my first baby into her new dorm today. A very weird and sad experience. But a good one too.
As noted to subscribers in an update yesterday, the precious metals correction would not be indicated to be another routine pullback if certain parameters were violated. Silver had actually already popped the 50 day moving averages on Monday after putting us on alert for a loss of support, as noted in NFTRH 409. Here’s the updated daily chart.
Silver is in a no man’s land after failing to whipsaw back above the MA 50’s yesterday. Today the miners made a catch up move downward. I do not do predictions, but people should at least be aware that things are happening on this downturn that have not happened on previous ones.
Here’s Huey’s situation. The 2016 channel was broken today and that is something that we have been noting could trigger a real correction, as opposed to the shake ’em out pullbacks thus far. Something to really get the bugz scattering. But HUI is more over sold (by RSI) than at any point in 2016 and entering lateral support from the May-June pattern, so a bounce could be upcoming.
But 17 is now open on silver and we have lower targets on HUI as well. But the story remains as was noted to subscribers; the 50 day averages will decide whether this is a quickie or a real sentiment cleaner.
By this time everybody should know who they are; trader, investor, correction buyer, runner with the puking herd… whatever. My thing, not only with the precious metals but also the broad market, has been to make sure I am booking enough profits so that days like today will not be show stoppers and I can feel like a predator instead of a sitting duck.
We have been using a Musical Chairs theme, as in know where you are going to sit when it really hits the fan. Any coming bounces should give some good guidance on what is ahead. Yesterday’s failed one in silver already did.
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