Quick update on the crazy action in the precious metals today. First of all the entire market experienced a huge bounce after the FOMC minutes, so it wasn’t just the metals that ran up higher. But the precious metals miners had breathtaking volume today, GDXJ had record upside volume and GDX had its second highest volume ever I believe. What we want to see now is follow through on the miners and continued pressure to the up side.
The big volume occurred across individual mining stocks too. Coming into today most miners were the most oversold they had been since the crash in gold in 2013, so they were overdue for a major reversal. Now it just remains to be seen if this reversal is the real deal or just another fake bear market rally. Personally I think the dollar is due to rollover here and the rally in the dollar leading into today was just a fake blowoff top, which I will discuss why in an upcoming article.