By Ryan McGuire for Gold Avalanche
It was a week of wild swings. Some stocks moved by as much as 10% after getting sold off heavily earlier in the week. Gold and Silver miners "got taken to the woodshed", as Chuck butler likes to say, and the market was generally volatile.
What's next? We'll have an article this weekend to explain in more detail what could be coming - but that deals with the edge of perhaps, rather than the imminence of absolutes. For now, this is what the Dow theory is Revealing.
The Dow hit new intermediate lows, which were not confirmed by the Transportation average. The next move was sharply up for both averages, but they both subsequently fell short of surpassing old highs and began to retreat again immediately. What this means is that this intermediate bull market we are currently in is still in tact, though for the bull market to be confirmed will require both averages to re-confirm new highs.
IF ... and it's a possibility ... both averages continue to new intermediate lows from here, then a new scenario plays out - the more scary one where the stock market declines 15% or more in the blink of an eye. So for now, continue to stay nimble. This divergence between the averages means volatility is still likely to stay with us, though if you bought anything (especially Gold, Silver, or the Precious Metals miners) on the most recent dip - good for you. That took guts.
We're confident that holding those particular investments is a good move to make. Just be sure to STAY invested and DO NOT get scared out of the market on big pull-backs. Use those pull-backs to accumulate your allotment a bit at a time.
Happy investing,
~R
It was a week of wild swings. Some stocks moved by as much as 10% after getting sold off heavily earlier in the week. Gold and Silver miners "got taken to the woodshed", as Chuck butler likes to say, and the market was generally volatile.
What's next? We'll have an article this weekend to explain in more detail what could be coming - but that deals with the edge of perhaps, rather than the imminence of absolutes. For now, this is what the Dow theory is Revealing.
The Dow hit new intermediate lows, which were not confirmed by the Transportation average. The next move was sharply up for both averages, but they both subsequently fell short of surpassing old highs and began to retreat again immediately. What this means is that this intermediate bull market we are currently in is still in tact, though for the bull market to be confirmed will require both averages to re-confirm new highs.
IF ... and it's a possibility ... both averages continue to new intermediate lows from here, then a new scenario plays out - the more scary one where the stock market declines 15% or more in the blink of an eye. So for now, continue to stay nimble. This divergence between the averages means volatility is still likely to stay with us, though if you bought anything (especially Gold, Silver, or the Precious Metals miners) on the most recent dip - good for you. That took guts.
We're confident that holding those particular investments is a good move to make. Just be sure to STAY invested and DO NOT get scared out of the market on big pull-backs. Use those pull-backs to accumulate your allotment a bit at a time.
Happy investing,
~R
