Welcome to the trading world of increasing volatility ... as of late I have been struggling through some health issues that have prevented me from actively participating on any forums but with the dramatic slide today I thought I would take a few minutes to give my opinion FWIW.
As of late, the pm physical markets have experienced a strong and healthy run higher but as it continued to advance at an every increasing rate (the slope of the advance became steeper and steeper) very little support was being built. The is always a problem and must be watched carefully for the simple reason that when a reversal takes place it can move very quickly to the downside as it just has.
On the pm stock side, they too had veen advancing higher but no where near the slope seen in the physicals ... as is normally the case, the pm stocks in general will follow the movement seen in the physical markets and again we see that today with most showing up "red". Yet many are simply also taking a breather in this longer term bull market and I'm confident will given time recover from this action today.
At this time except for 2 stocks I'm currently sitting in cash on the sidelines selling out most positions the past week or so in anticipation of this shorter term retracement. From here I would expect to see a bounce higher off the initial lows being put in and will consider only reentering this sector once the indicators provide confirmation that the bull market is about to reverse higher. This may take some time to do so I will be looking at alternative investment options that may provide opportunities in the shorter term.
CALVF short term should find support near the .14 p level and is currently on the shorter term charts appearing to be oversold ... therefore as an investor one should expect a move higher than current levels shorter term but keep in mind that it may very well be only a "dead cat" bounce because the price movement today has caused many indicators to turn short term negative and therefore resistance to the upside must once again be overcome. As stated before, this will happen but for now most investors in the pm sector are fearful and it will take some confidence rebuilding before they will want to dip their toes in this sector again.
Watch the charts and indicators and you should know when it is once again "safe" to take positions for the next advance higher. Please remember that the markets operate on the fear and greed factors (emotions) ... learn to ignore these emotions, focus your attention on the charts and indicators, then buy low/sell high whenever the opportunities present themselves.
As always, wishing all here the very best in health and future financial endeavors.
Steve
