The rally that I thought at last Friday’s close would happen by mid-week came even earlier than I expected. The quite strong Retail Sales data helped support prices as did the good earnings from Citigroup (C) that surprised many analysts. The rally was still not enough to erase the negatives from last week.
The futures are higher in early trading but the European markets are lower as was Hong Kong’s Hang Seng Index in reaction to a decline in China’s money supply. China watchers are nervously waiting for the 1st quarter GDP data out Wednesday.
The NYSE A/D line has turned up from support but needs another strong day of market internals to overcome its first resistance. This is clearly a rally that will need to be watched closely for signs of a rally failure. The S&P Metals & Mining Select Index (SPSIMM) was discussed last August and since then it has gained 11%, about the same as the Spyder Trust (SPY).
Some of the biggest global miners have seen double-digit gains over the past month as some have overcome their weekly downtrends, but does this mean they are good buy candidates now?
Will These Miners Stay Strong?
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