Based on today’s intraday action in gold, silver, USDX, and mining stocks, we decided to temporarily close our short positions and take the entire profit from them off the table. That’s yet another profitable PM trade in a row.

In today’s regular Gold & Silver Trading Alert, we wrote that while the price targets for gold and silver were reached, we have not seen strong bullish confirmations and thus we kept the short positions intact.

During today’s session, we have seen these confirmations. The USDX is up by 0.42, which should trigger substantial declines in gold, silver and mining stocks. Gold is a few dollars lower, but silver and the GDX ETF are barely lower, showing strength. It would not be significant, if it wasn’t for the fact that when we wrote today’s first Alert, gold and silver were even lower despite lower USDX. This means that since we wrote on these markets previously, they showed substantial strength. The intraday action in silver and GDX is also a clear intraday reversal, which is bullish.

We don’t have the volume data yet, but the above is enough to close the existing short positions as we would have currently not opened a new short position, if we didn’t have one in the first place.

The day-traders may want to go long here and profit from the rebound, but we’re not going to do so, at least not yet, based on the number of signals that we have right now. If it turns out that today’s reversals are accompanied by huge volume levels, we might go long for a few days, but - unless one is very short-term oriented - it seems to be too early to do so.

As always, we’ll keep you - our subscribers - informed.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief, Gold & Silver Fund Manager

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