Don't Catch Falling Knives - Gold Miners Continue to Slide

In the past week, the HUI Index of gold mining stocks continued the slide into the abyss closing today at 221.47.

Nothing on this chart is bullish, the gold mining stocks are in a downtrend, dropping another ten points since last week.

As the old adage goes . . . .

Gold is trading at Support that has held since mid May.

We shall see if this SUPPORT holds but again there is nothing Bullish on this chart.

Silver broke down below the LOW posted in May.

I suspect we might see silver in the teens again! Unless today's action is a head fake and a false breakout then $18.80 per ounce silver is on the table.

So nothing in the precious metals sector looks bullish, we continue to see a series of LOWER LOWS and LOWER HIGHS, which by definition is a DOWNTREND.

So now for some absolute pure speculation on what is going on, not just in the precious metals markets, but across all markets.

Look as the S&P 500 Index!

Nothing bullish to see here!

How about BITCOIN?

Nothing bullish here either.

I speculate that we are witnessing the GREAT DELEVERAGE!

What is deleverage? It is where speculators have borrowed large sums of money and placed HUGE BETS bidding up assets. Often in order to borrow these large sums collateral needs to be given, say BITCOIN or STOCKS.

What happens when the value of the collateral drops below the loan amount?

Force Liquidation mean the banker sells the collateral into the open market, thus driving down the value of the collateral, like bitcoin, or stocks or gold futures contracts.

Given the decades of easy money and appreciating asset values, this "deleveraging" could take a while or it could all end in a blink of an eye.

Don't you love how the Bankers Play?

Keep your eye out for stories of hedge funds being forced to liquidate assets.

I hope you find my little speculation entertaining, as speculation is solely for the realm of entertainment. Charts are for trying to navigate the markets.

The true silver lining for stackers is that silver is on sale and I suspect gold shall soon provide some rather attractive prices.

Peace out and Stack On!