PINL:VLTAF - Post by User
Post by
ALLEN4on Oct 24, 2010 2:12pm
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Post# 17604600
Merv Burak's comments
Merv Burak's comments
PRECIOUS METAL STOCKS
Well, finally we had a week that was nothing to write home about. The gold and silver stocks were in a basic declining mode although there were still 37 stocks (23%) in the universe of 160 that closed the week on the up side. However, if we go over to the quality sector we see a different story, only one stock out of the 30 was on the up side. So, the decline this past week was mostly due to the larger, higher quality stocks. This is born out by the sector Indices where the Qual-Gold Index declined by 3.8% while the Gamb-Gold Index declined by only 1.9%. Even the Penny Arcade Index only declined by 2.5%. With penny stocks if we were in a real decline they would have declined far more, percentage wise. It only takes a 2 cent drop for a 20 cent stock to show a 10% decline so the pennies held up pretty well. As long as the pennies are still holding on then we can breathe easier that the market is not in a serious decline, only a normal reaction to a long rally.
full article below
https://www.marketoracle.co.uk/Article23740.html