“Buzzword” Key Indicator to the Mining Index Profit Taking
Oh I forgot to include this in my weekly newsletter. Last Friday during a meeting with my principals I said that a correction in the Mining index was imminent given that newspaper headlines or the mainstream media have been overly exuberant over the turnaround industry. Just consider, in last Friday’s headlines the Philippine Daily Inquirer and the Businessworld had this banner on its front page “Mining, new business buzzword in the
When everybody becomes too confident and takes on one side of the trade then it becomes crowded and unsustainable, hence a correction. On the short term mining stocks are due for profit-taking after a blistering run. Over the longer period for as long as the prices of its underlying commodities remain at this levels or move higher and if there are no impediments or disruptions in the mining companies’ operations then these opportunities could be considered as buying windows.