Cleaning the Sweet Tooth in Miners

A harsh shakeout in the miners this morning, precious and otherwise, reinforces the notion that trading this part of the market almost always equates to "adult swim," with wild price swings and tons of head-fakes. 

In this case, miners bounced back late-last week after some initial weakness. However, the continued rally in the U.S. Dollar saw us a bit reticent to dive back into the miners with open arms for a potential new leg higher. 

To be sure, miners and most commodities could easily in the process of a new bull market. But it will certainly not be smooth sailing. And those traders who succumbed to a sweet tooth of the gains seen in recent months in the miners are experiencing some cavities today. 

With the XME, ETF for metals and miners, finally back down to its 50-day moving average, seen below on the daily chart, I am becoming more interested for possible support plays. But, as of now, support is only potential support, not actual support, which is a distinction often not drawn in this day and age where most market players look at charts. 

There are some other issues to consider here, too, which I will run through for Members in my usual Midday Video.