Sunday, November 9, 2014

Gold Mining Shares Record The Highest Weekly Volume In History

When there is something unusual in stocks it is very often marked by high trading volumes. In most cases such situations occure during market reversals. For example, in a bear market, high volumes happen at dips when most of the participants panick and a few big investors do the opposite.
Let us look at the charts below:

The first chart shows the price action of precious metals producers (GDX) and the second one relates to juniors (small PM producers, developers and explorers - GDXJ). Both charts have the same element - the last week was a period of the highest volume in history of GDX and GDXJ.
I do not claim this a bottom in these shares but definitely something important is happening in the whole PM shares sector.

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