Market Alert sent on April 11th, 2013

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Market Alert sent on April 10th, 2013

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Market Alert sent on April 9th, 2013

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The price action in the precious metals sector was extremely odd on Friday. We had a significant daily rally in gold, small rally in silver and a small decline (!) in mining stocks.

From the euro perspective, gold bounced after moving to the declining support line that we had featured in the latest Premium Update (the one based on the 2000 and 2008 bottoms) and the same can be said about the average non-USD performance (gold:UDN ratio). The volume that accompanied GLD's rally was significant, which confirms the bullish signal.

At the same time, however, the HUI Index confirmed its breakdown on Friday by closing for the third consecutive trading day below the rising long-term support line and the key Fibonacci retracement level. The technical situation for the mining stocks is now bearish. However, we have seen strength in gold. Additionally, it might be the case that a breakdown below such an important support line should be confirmed by 3 weekly closes, not only daily ones, or by a more significant move below it.

The above-mentioned breakdown is not something that can go overlooked by most precious metals investors - that's something that even long-term investors should have in mind. So, is breakdown a breakdown and it means that long-term investment positions should be closed, or is "this time different"? Maybe it is, because gold rallied so strongly on Friday?

Fortunately, there is one thing that happened on Friday that makes the situation much clearer. That's something that is not followed by most analysts and that impacted our today's decision regarding mining stocks. It's up to you to decide if this signal is important enough to justify a change in your portfolio, but please consider being aware of what it is and how it used to work previously.

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Only two weeks after the Cyprus lesson, investors seem to have forgotten it. Gold has dropped below the pre-Cyprus crisis level... And today you are about to learn:

• Why so little is changing while so much is going on
• How low could gold drop and still remain in a secular bull market
• The next long-term turning point in gold
• How the transportation-to-industrial stocks ratio is correlated with precious metals
• A weakening link between USD Index and gold
• An analogy between the current trading patterns and those seen in 2010 Euro Index chart
• Gold from the perspective of Japanese yen with a round of quantitative easing announced by the Bank of Japan
• New situation for gold priced in Australian dollars
• Possible target for silver some $5 from the current price
• A critical time for gold stocks
• What could dramatically change the situation in mining stocks
• Long-term implications of the Cyprus crisis
• What could pre-determine the next big move in precious metals

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