The miners have been the whipping boy of the markets for 8 months now. Eventually all things finally come to an end in the markets. There has been a lack of upside volume in any move the miners have made, but today that has changed dramatically. The VWAP line is hugging price, and the volume is huge. When other assets are extremely stretched to the upside and then finally crack (cough…Japan), money starts looking for undervalued assets elsewhere. You can’t get any more undervalued than miners, especially if the price of gold is ready to bounce.
Good trading all.
Steve Chapman, TRI