Monday, 4 March 2013

2pm update - miners under severe pressure

Market remains largely in a holding pattern. Most notable though, the mining sector which is seeing some severe weakness. Dollar is a touch lower, but Oil is now under the important $90 threshold. Copper again briefly broke the 3.50 level. Mr Deflation is..lurking.

Hecla (HL), daily

FCX, daily

GDX, monthly


Main market is largely, I thought the miners deserved to be highlighted.

How low might HL go, not least if Silver <20 ? HL @ $1 ?   FCX, $15 ?

If the deflationists are right, then despite the fed printing 1trn a year, its not enough to offset the underlying vapourisation of digital $.

So far today, the break in Oil <$90 is the second warning - after Copper, that Mr Deflation is still out there.
more on the miners later.