I know it seems like the losses in miners are so huge that we will never be able to recover. Like I said projecting the past into the future is just human nature.
But nothing could be further from the truth. If you want to get an idea of how violently miners can rally all you have to do is take a look at November.
From almost the exact same level they are at now miners rallied to new highs in one month. Don't forget this was an advancing bull leg that was getting mature. A rally from extreme oversold conditions back to old highs can unfold much more violently than a final leg up as hot money floods into a beaten down sector. (Just look what has transpired since the Nov. `08 low)
Once the selling pressure coming off the stock market exhausts I have no doubt miners will quickly get back to the business of correcting the massive mispricing compared to gold.
Liquidity always finds its way into undervalued sectors.
Market Direction Change
2 weeks ago