There isn’t much for me to comment on today other than to keep an eye on the wedge pattern that may be forming on the daily chart for spot silver. We haven’t had 4 consecutive down days since I believe February and the stochastics, RSI, and MACD have not been this low since the end of August.
As for the length of this correction, it needs to play out more for me to be able to accurately predict how long it will last. As of right now, it could end at the end of the day tomorrow, or at the end of the month. Two important things to watch other than the wedge are the COT reports which will come out tomorrow, and the options activity. I still see over 45,000 $12.50 calls for Jan 11 on Hecla Mining (NYSE:HL). I think that those calls would be covered by the fund that placed them if they believed that this correction would last as they only have 2 more weeks before expiration and Hecla closed around $9.90/share today – which in my opinion is ridiculously oversold.
Keep an eye on those juniors, this is a great chance to get a discount –
Anglo Ashanti (NYSE:AU) $44.80
Aurizon (AZK) $6.74
Sandstorm Resources (SNDXF) $.79
Brigus Gold (BRD) $1.79