I Want Precious to Come Back Up from the Hole

One of the more bullish aspects of the rally in precious metal and especially the derivative miners has been the way in which two of the mid/large cap miners responding to recent gaps down. 

Both GFI and SLW had been lagging the precious rally in recent weeks, dealing with their own company-specific issues which the market initially sold. 

But note how both charts then recovered, as demand simply gobbled up the sell-offs as a sign of much-improved risk appetite and a noticeable change in character from what we have seen for a while now. 

Going forward, I view the likes of SLW is an actionable "catch-up" play to some of the miners which have already screamed higher to short-term very overbought conditions, not unlike what GFI has done in recent sessions. 

Of course, when you view the long-term charts for precious metals and miners, the move higher may be in the very early innings. But due to the volatility and wild swings inherent to the complex, it still makes sense to trade around them as the gold bug approaches one new test after the next of proving a new bull run, beyond a spirited bear market rally/fear trade.