During the first two weeks of the [recent] correction while the market was in crash mode miners actually rallied over 14%. Miners, like gold had completely decoupled from the stock market. It wasn’t until gold put in its smaller daily cycle correction that the miners pulled back at all and even then it was only a mild 16% pullback.
Pretty impressive action considering the stock market was still experiencing severe selling pressure at the time.
It’s apparent that miners have now moved into strong hands. Hands that aren’t going to sell at every little wiggle in the market. Hands that are going to scoop up the shares that flighty retail investors are dumb enough to let go of.
This picture gibes with gold miner earnings coming in above expectations, as higher gold prices are not euchred out by a correspondingly higher cost structure that squeezes margins.