Based on what we are seeing right now - right after the markets opened in the US, it seems that closing the entire short position and taking profits off the table is justified from the risk to reward point of view.

The relative strength in gold, silver and mining stocks despite USD’s rally is too significant for us to continue to keep the short position intact, especially that mining stocks appear to be moving up strongly given gold’s rally.

We realize that this may seem odd given what we wrote earlier today, but that’s how we see it. Additional day of strength seems to change a lot - the chance for decline’s continuation in the short term moved from about 80% to 60% or so at this time - which is not enough to justify holding an even small short position in our opinion.

At the same time, we would like to emphasize that the medium-term trend remains down and what we saw yesterday and what we are seeing today, didn’t change it.

We will most likely be back on the short side of the precious metals market shortly, but not before we see additional short-term bearish signals. For now, taking profits off the table seems to be the way to go.

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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