Isn't That Just Like an Algo?

...brings a knife to a gunfight. 

The metals and miners, now that their recent strength is becoming obvious, are largely well off session highs as the XME ETF even prints a daily chart reversal candlestick. I am not turning bearish on the group, but would welcome some of the charts to reset in the coming days, especially if the U.S. Dollar finds a relief rally. 

We sold steel long AKS this morning into strength, after unloading precious metals miners longs yesterday. 

Overall, the rotation into the industrial/materials/energy/mining complex is just textbook late-cycle market gamesmanship. It may be inflation is on the horizon. 

Or it may be what we saw in 2008...an inflationary head-fake through Q2 before a deflationary crash later that way. 

Either way, as traders we can trade them with tight timeframes and let the market sort itself out as to how sustainable these moves are. 

One thing is certain: Fighting the rotation into the miners of late has been a very painful strategy.