Silver Has a Chance to Become Legendary

With various headlines about Trump and North Korea throwing cold water on what is typically a bullish drift into the long, Memorial Day holiday weekend, the Dow is off by more than 200 points as I write this. The pullback appears to be orderly, though if the S&P 500 Index loses 2,700 below it would be a rough way to head into the holiday for bulls. 

That said, the broad market weakness and headlines are perhaps masking the notable strength in the silver miners. We profiled silver miner AG earlier in the week. And there are plenty of other silver miners sporting sound daily charts and much-improved long-term charts. 

Another factor which makes for an even more compelling case regarding individual silver miners is that both the silver metal ETF, SLV, and the silver miner sector chart, SIL, are decidedly underwhelming. In other words, SIL and SLV are sporting neutral charts, at best, mired in cross-crossing daily chart moving averages with price unable to sustain much of a trend either way. 

But there are plenty of individual names like AG BVN EXK PAAS SSRM WPM, among others, with clean daily charts, meaning price is operating above rising daily chart moving averages. In other words, these outperforming individual miners are signaling "risk on" well before it is becoming obvious. The SSRM daily chart, below, is just one example of that technical predicament. 

And with this morning's strength in the face of a weak tape, it only adds to the allure for a more meaningful move higher this summer.