This is provocative, but in the spirit of market discourse, what is the story behind this chart?
sc-73
My interpretation of the psychology of this chart is of the bears registering their non-belief of the validity of the new trend or that the bull is real. The volume in this sell off is simply shocking. Why would one buy this chart (trend) with increasing volume? I suggest it represents unbelief that the PM stocks rally is real. As price drops, increasing volume gets thrown into the cauldron to be vaporized. We all know that a market principle for a healthy sold out bottom is a drying up of volume over time. Often this is constructed with a double type bottom. This is not what we see here. We see a catecylsmic wipeout on increasing volume. I can only explain it by the psychology of desperate action to justify ones denial. I know that is harsh, but what else explains it.
Now one can always attempt to play a bounce and they always do come along, but certainly so far that has not been the correct game to play. Since early February I have stayed in the game. My objective is HUI 340-360. I have played it with only a few issues such as MUX, MRZ, ROG, AKG and a handful of others. I have avoided margin as the PM stocks provide enough margin to the metal and I don’t want to suffer decay. Yes, one can attempt to trade, however for me I want to make sure I capture all of the move in the trek back to known values Staying in it to win it!