While looking for momentum in the market today, just before the start of a new year, gold exploded higher.
For those of us without futures accounts, gold miners is the 2nd best way to capture momentum moves in the yellow rock. It is always important to watch gold futures as you can see in the next chart.
Just by looking at the chart, you can tell that miners in this case, lagged behind the move in gold. If you were paying attention, then it was an obvious tell. Admittedly, the correlation isn't always so clear when gold is moving sideways but on big moves up or down, miners will follow shortly.
And where we were on this trade?
We were also all over this on voice chat. No screenshot of audio unfortunately.
One more chart.
USD provided another clue. USD/JPY is a good indicator of dollar strength. It had trouble at 118 and was also tightening the trading range. The risk reward for a down move in dollars and upwards move in gold was great.