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Sunday, March 6, 2011

THE RECOGNITION STAGE

At some point in any bull the market finally "catches on". That recognition phase shows up as an explosive expansion in volume on the weekly charts. 

In early `05 the market finally figured out that the steady rise in oil price wasn't a fluke. That it was in fact a massive bull market in the making. You can clearly see this "recognition phase" in the two charts below.



The same thing happened with the major mining stocks in early `09.


Silver has now reached the recognition stage. 


The market has also figured out what the bellweather mining stock of this secular bull is.

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4 comments:

  1. Boss ManMarch 6, 2011 at 6:57 PM

    Toby, I'm using AGQ instead of SLW (or any other silver stock or ETF) because it has superior relative strength over any others. What is your favorite silver holding, and why?

    ReplyDelete
  2. StockMarch 6, 2011 at 9:07 PM

    This is kind of off topic, but I posted some cool whale pictures I took today in Honolulu. Also posted copper charts and copper inventories. Did you know that inventories were rocketing upward at the same time the price was rocketing upward. Makes you say....hmmmm

    http://oahutrading.blogspot.com/

    ReplyDelete
  3. IvanMarch 7, 2011 at 12:58 AM

    Gary,
    what about Gold making a day cycle low at 1411 last week on March 3?

    ReplyDelete
  4. noahMarch 7, 2011 at 6:18 PM

    Toby... Can you give some spec upside targets on SLW? I'm thinking that declaring the dividend was the crown jewel, and now we're talking mutual fund money coming in. This could be spectacular, but like you say challenging to gauge. Care to share your thoughts on this?

    ReplyDelete

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