Starting to Come Together, Pepper

The thesis we looked at of late and over the weekend in my video Strategy Session is unfolding this morning, with precious metals and miners outperforming while equities slump. With respect to the precious metals and miners complex, silver and the junior gold miners are typically the two best gauges of risk appetite, or lack thereof. Here, silver and the junior gold miners, seen below on their respective daily timeframes, are outperforming the complex this morning, which is a promising sign for gold bugs. Note the GDXJ breaking out from its well-defined resistance trendline since late-August (upper light blue line, first chart below). Still, you can see both SLV and GDXJ now needing to contend with their declining 50-day moving average (darker blue line) just above price. I remain long SLW, a silver miner, since Friday. The relative strength from the space is worth noting, but still obviously has more room for improvement. Nonetheless, it looks to be a good place to hide this morning, with equities as a whole getting clocked.