If you look at the charts and volumes you would have noticed that the major PM mining stocks and the PMetals have been enjoying a slow incline in price since the start of the year. But the only worrying thing was the volumes were low. This lead me to believe that is was small money and computer trading that was bidding the prices up - I remember one stock had an average volume per trade rate of 500 shares per trade and average cost of about $300 per trade.... and total volume for the day was about equal to the mean average. Most brokers dont allow less than $500 parcels. What did this mean - this meant that people were not buying contrary to what it seemed. Most of the money way staying on the sidelines. It seems today that people are actually selling, not just computer trades driving the price down - but people with holdings are selling. OK - so why is this good? The only way the PMetals can go higher is if the buyers absorb the sellers, providing a firm bottom from which to proceed. I am hoping this is the final (or at least one of the final) selloffs where investors are throwing up their hands and saying "Im done with PM stocks and Pmetals - Im going somehwere else", and I believe these sellers will be moving into blue chip stocks, div paying stocks and the general market, or selling their holdings and vowing never to invest again. It is only when the capitulation of sellers occures that price ceiling can be removed and taken out. I hope the subsequent bounce in prices is slow, sneaky and uninteresting.... we want to attract as little attention as we can over the next 8 months. Come August/September I am hoping that we will make a bold run to nominal highs. IMHO now is not the time to sell if you are a long term holder (I obviously dont know your circumstances, this is only general opinion not specific advice!) if you have picked stocks well, diviersified and averaged down, let your portfolio sit and cool down if you are a long term holder. Have patience, dont freak out. 2009 was the year of hope/dreams 2010 was the year of greed 2011 was the year of fear 2012 was the year of anger/dispair This year is the year of capitulation and disgust
