Gold Miners Rebound, Small-Caps Lag

 | Feb 28, 2017 | 11:29 AM EST
  • Comment
  • Print Print
  • Print
Stock quotes in this article:

gdxj

,

ssri

The pattern for weeks now has been that the market hits an intraday low in the first hour or so of trading. There may be another lull during the day but we have a string of finishes near the highs. The same pattern is developing once again this morning.

Dan Rosenblum of SharkBiotech.com sums up a number of the market extremes we are seeing. We have had 95 days without a 1% decline, which is the longest streak since 1995-1996. There have been 13 straight up afternoons and there are 40 straight days without a close near the lows of the day.

Despite the consistent intraday pattern in the indices there is some rotation taking place under the surface. Small-caps led yesterday but they are lagging today. That is evident in breadth, which is running 2-to-1 negative.

Another shift today is in gold miners. Yesterday the sector was slaughtered, although gold and silver didn't move much. It looked like there was either some rebalancing in the gold mining ETFs or a major fund move of some sort. Market Vectors Junior Gold Miners ETF   (GDXJ)   was down 9.5% yesterday but is bouncing back about 3.7% so far today.

My Stock of the Week, Silver Standard Resource  (SSRI) , was caught in the sector meltdown but is bouncing back today. Nothing has changed there and I'm inclined to build that position depending on moves in interest rates and the dollar.

Strong Chicago PMI and consumer confidence numbers are not having any impact on the market today and bonds don't seem to care, either. Chances of a March rate hike increased yesterday, but the market doesn't seem to care too much about it at this time.

Back in January many bears anticipated there would be a "sell the inauguration" trade, but it never developed. Maybe it was just too obvious. The market is even more extended now and doubts about how easy it will be to put Trump policy in place are growing. However, we still have to wonder if the "sell the Trump speech" trade is still too obvious to work very well.

Columnist Conversations

As far as TSLA is concerned, I still have a higher target above the market at the 409 area.  I stated in ...
The TLT setup discussed in my last commentary is a bust. Key support was violated and it violated the recent l...
BBY is getting smoked this mornings(weak forecast).  The stock is off 8% after opening the session with a...

BEST IDEAS

REAL MONEY'S BEST IDEAS

News Breaks

Powered by

BROKERAGE PARTNERS

Except as otherwise indicated, quotes are delayed. Quotes delayed at least 20 minutes for all exchanges. Market Data provided by Interactive Data. Company fundamental data provided by Morningstar. Earnings and ratings provided by Zacks. Mutual fund data provided by Valueline. ETF data provided by Lipper. Powered and implemented by Interactive Data Managed Solutions.


TheStreet Ratings updates stock ratings daily. However, if no rating change occurs, the data on this page does not update. The data does update after 90 days if no rating change occurs within that time period.

IDC calculates the Market Cap for the basic symbol to include common shares only. Year-to-date mutual fund returns are calculated on a monthly basis by Value Line and posted mid-month.