After a deep overnight spike lower in the precious metals futures, designed to run the stops and skin the spec long out, gold and silver managed to snap back in the NY trading hours.
Early this morning I was telling some guys to look for the big cap miners and the silver fliers to lead the way higher ahead of the bullion futures if we were going to get a reversal, or at least a relief rally.
And that is what happened.
I did short the broader stock index, but only to provide a little hedge for the stock exposure in new miner longs taken on yesterday afternoon.
But that worked too, in its own right, as a little air from yesterday’s moon launch leaked out.