The ADP employment numbers revealed that 246,000 private sector jobs were created in January, compared to just 151,000 jobs in December. It appears small companies are gearing up for lower Trump tax rates, decreased regulation and perceived fiscal stimulus. This mindset is supporting stocks. A strong stock market is likely to put pressure on metals.
Metals and Miners should provide a meaningful correction in February. December produced severely oversold conditions in gold, thus creating a tricky rebound. Nearly everyone was awaiting a sector pullback, and that virtually guarantees timing complications. Nevertheless, metals and miners should soon correct to reasonable retracement levels. I prefer to wait (not chase) for a favorable setup before buying.