If there’s any take-away from 2020, it’s that anything can happen.
Recent SA price action shows a wide trading range with high volume.
Typical market behavior is to come back and test.
Looking at SA from a relative strength perspective, we have the top three majors (GDX) listed in terms of the highs in August, to most recent lows:
The three majors are ‘officially’ in bear markets while SA is hanging just above the – 20% level.
On a relative scale, looking at price action, SA is reluctant to head lower. It’s exhibiting relative strength.
If and when the markets (S&P, Dow, NASDAQ) reverse in earnest, there’s likely to be wide spread panic. Just like last time and probably worse.
It’s the person (or entity) that keeps their head under such conditions that has potential to establish long-term, low risk positions.
As a side note: If and when we get there (panic selling), and if SA pushes below well established support (6-area), the initial plan is to open a major long position … but with a significant caveat.
That caveat is: We’ll take possession of the actual physical shares (not advice, not a recommendation). The broker could put up a fuss and charge a fee. So be it.
The world economic forum has already stated, the next “planned” event will be cyber attack.
Charts by StockCharts