The full version of today’s analysis will be posted shortly - it’s big, so the editing/publication process takes longer than normally. In the meantime, I’m sending a quick update on today’s quick upswing:

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Gold, silver, and mining stocks moved higher today most likely based on the better-than-expected nonfarm payroll statistics, so I thought that you’d appreciate an update on this before the weekend.

In short, this is a non-event. It doesn’t invalidate anything that I wrote in today’s big analysis.

Here’s why:

The above hourly GDXJ chart features the recent situations when the nonfarm payroll numbers were better than expected – I marked those moments with vertical, dashed lines.

In May, June, and early September those were clear tops. There was some immediate-term strength, and it was a fake move that was then followed by bigger declines.

The October case was followed by a rally, and the December case was followed first by a decline, and then by a rally.

Overall, the implications are either neutral, or a bit bearish. In other words, like I wrote above, it’s a non-event.

The GDXJ moved back to its rising, orange resistance line, further verifying it as resistance – the breakdown was not invalidated, and the bearish implications thereof remain intact.

Silver moved higher, but it also moved higher in perfect tune with what I prepared you for earlier today.

The white metal moved back to the previously broken neck level of the head-and-shoulders pattern, which is a completely normal phenomenon. It’s not bullish, it’s a common thing to see at this point.

As the pattern gets verified, the bearish case gets stronger.

The enormous opportunity in the precious metals sector remains intact.

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

Have an awesome weekend!

Thank you.

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