Let's See Even More Heart Now

Despite the U.S. Dollar snapping back today after yesterday's remarkably dovish FOMC, precious miners fought back to green this afternoon and bucked the traditional inverse relationship between the Dollar and gold/miners. 

For a while now we know that precious miners have steadily improved, dating all the way back to a trough in September 2018. The group, however, became noteworthy earlier this year with a late-January surge which has not been relinquished in favor of mostly sideways action even since. 

Now, however, should come a true test of gold bugs' mettle.

Will they be able to finally seal the deal and pounce on an easy Fed, a Fed which you might argue has effectively trapped themselves into an indefinite policy of easy money due to the prior acts (and omissions) of Greenspan, Bernanke, and Yellen? 

We can debate the macro backdrop from now until kingdom come but sooner or later we need to see the GDX ETF, updated below on its daily timeframe, resolve its sideways base consolidation higher and usher in a new bull run which should rather quickly take out multi-year highs based on how clustered prior resistance levels are above dating back to 2016. 

In the meantime, I have a few miners on as swing as, more or less, placeholders, watching them flip red-to-green today. That is all fine and well. But the real action will come when gold bugs assert themselves and express the macro view that the Fed is trapped by effectively being one of the first major asset classes to call them out via price action. 

If so, then miners like GOLD NEM WPM could easily start trading like software stocks.