GOLD AND SILVER SURGE -- SILVER AND ITS MINERS ARE RISING FASTER -- STOCKS WEAKEN

GOLD AND SILVER SURGE... A couple of recent messages described the price of gold being in a downside correction but finding support near its 200-day moving average.   The most recent message showed both metals gaining more ground which suggested that their correction might be ending.     Both precious metals are surging today and looking even stronger.   Chart 1 shows the Gold SPDR (GLD) gapping 2% higher today and rising decisively above a down trendline drawn over its August/ November highs.   That's a strong sign that gold's three month downside correction has now reversed to the upside.  As usually happens when precious metals are rallying, silver is rising even faster.

SILVER ISHARES HIT THREE-MONTH HIGH... Chart 2 shows Silver iShares (SLV) jumping to the highest level in more than three months.  More importantly, the SLV has risen above its early November peak to complete a double bottom formed between September and November (see circles).  That's another bullish sign for both metals.   Stocks tied to both metals are also having a strong chart day with silver stocks in the lead.

SILVER AND GOLD STOCKS RALLY... Silver stocks are leading gold stocks higher.  Chart 3 shows the Global X Silver Miners ETF (SIL) rising above its early November peak (and a falling trendline) to turn its trend higher. It's also doing so on strong volume.   Gold stocks are also rallying.  Chart 4 shows the VanEck Vectors Gold Miners ETF (GDX) rising further above its moving average lines on rising volume and nearing a test of its three-month down trendline.  Gold miners usually follow the lead of silver miners which have already broken out to the upside.   Part of today's buying of precious metals may be tied to heavy selling in stocks which are starting the new year in a risk-off mode.

STOCKS WEAKEN IN HEAVY TRADING... Stocks are starting the new year with some heavy selling.   Chart 5 shows the Vanguard Total Stock Market ETF (VTI) having the weakest day in two months and threatening its 20-day moving average.  Trading volume has been heavy.   Its 14-day RSI line (top box) has fallen to the lowest level in two months; while daily MACD lines in the middle box have been negative for most of the last month.   Part of today's selling may have something to do with tomorrow's runoff election in Georgia.