Asia stocks fall as Fed caution grows; China inflation underwhelms
Just about the only sector whose ascent I celebrate is precious metals, and we have a positive event this morning in that regard as GDX blows past resistance.
Oddly, the junior miners aren’t as well-formed. Yes, they’re up, but the “regular” miners ETF looks a lot better than GDXJ.
Interestingly, this is going on while GLD is having a relatively ho-hum day, up only fractionally and well below its April peak.
One of the individual miners I have highlighted is DRD, which is clicking along nicely as well.
Finally, this all aligns nicely with my long-term and oft-cited assertion that the XME/GDX ratio chart will be sinking for years, meaning that a long-term pairs trade of short XME, long GDX would be the way to go.