PM SECTOR Update - Following The Script So Far...
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The Precious Metals sector has followed the script set out for it in the article posted on the site at the end of last month entitled PM SECTOR CORRECTION ROADMAP with SLV dropping back to $42.5 early this month as predicted before the expected B-wave countertrend rally started. However, the B-wave rally was somewhat larger than expected and the Accumulation lines of GLD, GDX and SLV have all shown strength relative to price, making new highs in the case of GDX and SLV, which is viewed as a bullish divergence which suggests that the C-wave of the corrective phase, which started on Thursday, will probably be shallower than we earlier expected and could abort at any time, which we need to bear in mind. This is why we are “putting our best foot forward” and buying some stronger stocks even during the corrective phase. Here is the chart from the November 9th PM SECTOR OUTLOOK and we now know that it decided to do the B-wave…
So now we will look at the latest 6-month charts for GDX, GLD and SLV which are all marking out the same wave pattern with SLV (and silver) showing notable strength – silver cam within a whisker of making news highs on Thursday which is hardly surprising as silver has a lot of catching up to do relative to gold and is poised to embark on a major parabolic acceleration once its current corrective phase is done.
The following annotated charts do not require commentary…
Lastly here is an exceptionally encouraging chart that I came across in the latest video on silver by Mike Maloney and Alan Hibbard The Most Important Silver update You’ll See which is certainly well worth watching. It shows the current silver bull market overlaid on the 1970’s bull market. As we can see it looks like it’s on the point of breaking out into a steep parabolic slingshot move that will take it far higher than its current price, once this minor corrective phase is done.
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Clive P. Maund’s interest in markets started when, as an aimless youth searching for direction in his mid-20’s, he inherited some money. Unfortunately it was not enough to live a utopian lifestyle as a playboy or retire very young. Therefore on the advice of his brother, he bought a load of British Petroleum stock, which promptly went up 20% in the space of a few weeks. Clive sold them at the top…which really fired his imagination. The prospect of being able to buy securities and sell them later at a higher price, and make money for doing little or no work was most attractive – and so the quest began, especially as he had been further stoked up by watching from the sidelines with a mixture of fascination and envy as fortunes were made in the roaring gold and silver bull market of the late 70’s.
Clive furthered his education in Technical Analysis or charting by ordering various good books from the US and by applying what he learned at work on an everyday basis. He also obtained the UK Society of Technical Analysts’ Diploma.
The years following 2005 saw the boom phase of the Gold and Silver bull market, until they peaked in late 2011. While there is ongoing debate about whether that was the final high, it is not believed to be because of the continuing global debasement of fiat currency. The bear market since 2011 is viewed as being very similar to the 2-year reaction in the mid-70’s, which was preceded by a powerful advance and was followed by a gigantic parabolic price ramp. Moreover, Precious Metals should come back into their own when the various asset bubbles elsewhere burst, which looks set to happen anytime soon.
Visit Clive at his website: CliveMaund.com
