In the summary of today's alert we wrote the following:

"Once metals and miners prove their ability to decline despite lack of rally in the USD or if we see a bottom in the USD, we will likely double the size of the position, but it is not the case at this time."

Based on today's strong decline in the USD Index, we think that doubling the size of the short position in gold, silver and mining stocks is now justified from the risk/reward perspective.

We can't know for certain if a decline in USD is over or not, but our target area for this short-term decline was just reached and we see that gold's and silver's reaction is limited while mining stock didn't really move higher and this is a very bearish combination.

Summing up, we think that full speculative short positions are now justified from the risk to reward perspective (of course this doesn't mean using the entire capital for this trade).

Thank you.

Sincerely,
Przemyslaw Radomski, CFA
Founder, Editor-in-chief

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