THE BIG FIVE(s): Miners vs Banks - A Key Multi-Year Level

Research Notes For 30 June to 04 July > https://www.unum.capital/post/r3004july

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This is a ratio chart, showing a basket of miners (AGL, BHG, GLN, ARI and S32) vs banks (ABG, CPI, FSR, NED and SBK). Zooming out, the ratio is approaching a potentially key level on multi-year basis. If the ratio trades at or around this level, it would likely be approaching oversold on a multi-week and multi-month basis, which could offer an appealing reward-to-risk for traders looking to buy miners and sell banks. This chart is important. Don't ignore it.

Lester Davids

Senior Investment Analyst: Unum Capital