The markets were basically unchanged Wednesday, but if you were in the right sectors, it certainly didn’t feel like a flat day. The market grinded higher during the morning trade, testing the upper end of the current three-day range, and then after the Fed minutes, like a mirror image, drifted lower for most of the afternoon to close near the bottom of the range. Tomorrow will bring another showdown between the bulls and bears to determine whether the market’s return to highs will be delayed.
The real story in a flat market today was precious metals, and more specifically miners. While the underlying commodities gold and silver broke out, for the first time gold miners handily outperformed. The Market Vectors Gold Miners ETF (GDX) gained 5%, exploding out of a cup and handle pattern. The silver miners were also strong as the Global X Silver Miners (SIL) gained 4%. The biggest winner among the silver miners was Coeur d’Alene Mines Corporation (CDE), which gained 5.3%. Gold and silver blasted off despite a rate hike in China and some of the most hawkish minutes to date from the Fed, seemingly a positive sign for future precious metal prices.
Apparel stocks also had a big day, highlighted by Abercrombie & Fitch Co. (ANF), which jumped nearly 11% after its first ever analyst day. Two stocks from the Morning Call, Under Armour Inc. (UA) and Lululemon Athletica inc. (LULU), also surged 2% and 2.8%, respectively.
For more market and stock commentary watch the T3Live.com Daily Recap video below with Scott Redler.
*DISCLOSURE: Scott Redler is long AAPL, NG, GLD, BAC, AUY, XOM, RBY, XOM, RBY, OIH, ABX, V, LVS, FCX, JPM, lMT, MSFT, F, SSYS.
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