Watch For Metals & Mining ETF XME Mean Reversion Says Derivatives Strategist

MKM Partners Managing Director and Derivatives Strategist Jim Strugger can smell mean reversion like napalm in the morning. As he looks over his cross-asset monitor, he notes that the SPDR S&P Metals & Mining ETF (XME) has numerous technical features that make the situation right for a contrarian investment. This isn’t your standard mean reversion inside a price trend higher. S&P Metals & Mining ETF (XME) bottomed before stock market in early 2016 What was interesting about mining stocks is how they correlated, and in fact preceded the stock market in early 2016. While stocks began to recover on February…