Deep Shaft

By -

The Metals & Mining ETF tends to slog and churn slowly, but it does so in broad, sweeping cycles. Looking at the entire history of this instrument, you can plainly see a quartet of reversal patterns. I have used SlopeCharts‘ expansion feature to make the future and the downside potential more plain. As always, click the image for a super-big version.

slopechart XME

My bearishness on XME may seem incongruous with my bullishness on gold, but take note of this item which illustrates that the vast majority of the metals & mining fund has noting to do with precious metals (which constitutes about one-third of it).