HELPING PHYSICIANS ATTAIN FINANCIAL SECURITY
By Robert M. Doroghazi, M.D., F.A.C.C.
As I have frequently pointed out, in a precious metals bull market, the miners usually lead bullion, and silver usually leads gold. I have suggested over the last several months that you pay special attention to the silver miners, and noted that Silver Wheaton (SLW) has been consistently leading the way.
Please look closely at the chart of SLW (page 2), because there are several important technical points. 1) On November 6, SLW “gapped up” to a new high (the stock opened with a gap from the trading high of the previous day. 2) Now this is even more important. Note that during the correction of the last 2 weeks it never “filled in” that gap, it always stayed above the breakout. Compare that to the chart of GLD (see page 3), where the breakaway gap was filled in.
Then SLW closed at a new high today, and Pan American Silver (PAAS) was close. The fact that neither of these filled in (dropped below) their breakaway price and now have new closing highs I consider very, very bullish. If things go as they did at the last breakout, look for SLV to breakout, followed by GDXJ (Market Vectors Junior Gold Miners ETF), then GDX and GLD.
For the last several months the precious metals and the broad market have moved in tandem. I also thought it was bullish this morning that while the market was down almost 100 points, the precious metals rallied strongly. The broad market rallied, but still closed down, while the precious metals just continued higher.
All of this action is very bullish. Now watch the next several days for follow-through.
RMD
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