Silver Equities Outperforming Year-to-Date


from Silver Doctors:

Silver, like gold, was also sold unevenly lower starting at the 6:00 p.m. EST open in New York on Thursday evening — and that lasted until a few minutes before the London open.  It was then bounced off its $16.82 spot price low multiple times from there until around 12:45 a.m. GMT/7:45 a.m. in New York.  From that point onwards, ‘da boyz’ handled the silver price in a matter very similar to that of gold…also capping it at the 11 a.m. EST London close.
The high and low ticks aren’t worth looking up, either.

Silver was closed on Friday afternoon in New York at $16.935 spot, down 6.5 cents from Thursday.  Net volume was on the quieter side as well, at a bit under 56,500 contracts — and there was a bit under 11,000 contracts worth of roll-over/switch volume in this precious metal.
It was the same price pattern in the silver equities, at least up until silver’s price was capped at the London close at 11 a.m. EST.  They sold off a bit from there until noon — and then rallied a bit until a few minutes before the 1:30 p.m. EST COMEX close.  They headed lower from there — and Nick Laird’s Intraday Silver Sentiment/Silver 7 Index closed down 0.52 percent.  Click to enlarge if necessary.



And here’s Nick’s 1-year Silver Sentiment/Silver 7 Index chart, updated with Friday’s doji.  Click to enlarge as well.



The three usual laggards in the Silver 7 Index…PeñolesBuenaventura and Hecla…turned in mixed results yesterday.  Peñoles closed higher by 0.56 percent…Buenaventura was down 1.34 percent — and Hecla closed lower by 0.42 percent.  First Majestic Silver was down 1.49 percent.

Here are the usual three charts from Nick that show what’s been happening for the week, month — and year-to-date. The first one shows the changes in gold, silver, platinum and palladium for the past trading week, in both percent and dollar and cents terms, as of their Friday closes in New York – along with the changes in the HUI and the Silver 7 Index.
Here’s the weekly chart — and it’s a lot happier looking this week than it was a week ago.  The only red on the chart is palladium — and that’s because of the beating ‘da boyz’ laid on it on Friday.  Click to enlarge.
Here’s the month-to-date chart.  Here’s where the outperformance of the silver equities stands out in all its stark glory.  I’ve been talking about this all week — and here’s the visible proof of that…the only green bar on the chart.  And what makes it even more incredible is how badly the underlying precious metal is performing.  I know I’ve spoken about it a fair amount, but it’s a big smack across the side of the head when you see it in graph form.  This is unprecedented — and you have to ask yourself why this so.  I know I am.  Click to enlarge.
Here’s the year-to-date chart.  It’s still all green across the board, of course — and the most notable feature is that the silver equities are now outperforming their golden brethren…compared to the performance of their underlying precious metal price increases — and that’s all because of what has happened during the last two weeks — and the proof of that is in the weekly and month-to-date charts above.  They would be doing even better than they are if it weren’t for the three perennial laggards…Peñoles, Buenaventura and Hecla.
The current round of the ‘wash, rinse, spin’ cycle by the Big 7/8 commercial traders ended on Tuesday — and there’s no way of knowing if this is the end or not.  It’s very possible that they may be resting before starting the next leg down…which means there’s more price pain to come.  You’ll find out more about that when you read my commentary on Friday’s COT Report further down.

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