Monday a popular topic with various analysts, newsletter writers and traders was gold Miners. It seems that a lot of market participants are paying attention to this asset right now, so I thought I would take a look at the topic as well.
Gold Miners have performed quite well since late May bottom
Source: Bar Chart (edited by Short Side of Long)
As we can clearly see in Chart 1, gold miners have performed quite well since the late May bottom. The initial rally in June has been consolidating in July and August, as gold miners now find themselves at a first major resistance zone. Silver miners have also been doing just as well.
Gold Miners have been outperforming Global Macro assets!
Source: Stock Charts (edited by Short Side of Long)
Gold miners have started to show improving relative strength against major global macro asset classes (see chart 2). What does that mean? Well in plain English, gold miners are holding their own while the rest of the assets from global equities to junk bonds and from REITs to agricultural commodities have been experiencing corrections.