We have summarized the latest Premium Update by stating the following:

"In terms of probabilities, we estimate the odds of precious metals sector moving immediately higher from here at 60% and the probability for a gold price being higher than it is right now in 3 weeks from now at 70%. If we see a clear signal from the SP Gold Stock Extreme Indicator (it moves above its upper dashed line), both probabilities will increase to 75%."

Moreover, we had previously seen a buy signal from the SP Gold Stock Extreme #2 Indicator and we commented (in the latest update) on that in the following way:

"This is the only indicator which says “Buy” right now, however, which means that additional few days of trading sideways or slightly lower prices are not out of the question.

We will watch our other indicators (especially the SP Gold Stock Extreme Indicator because of the 100% efficiency in one of the signals that it used to flash since 2008) which are not yet giving a buy sign, and if the situation changes, we will notify you accordingly."

What we have just seen (based on yesterday's closing prices) are buy signals from the SP Gold Stock Extreme Indicator and the SP Gold Stock Bottom Indicator, which makes the outlook more bullish than it was the case last week. You can view these indicators here:

http://sunshineprofits.com/charts/sp-indicators-short-term-charts

The SP Gold Stock Extreme Indicator moved below its lower dashed line, which is not the signal that has been 100% accurate since 2008 (that would be the case if it moved above its upper dashed line). Nonetheless, the combination of buy signals from 3 of our indicators is something that proved to be reliable many times in the past (and at the same time it was very rare when such combinations were not followed by a rally), so we believe that the odds of an immediate move higher in the precious metals sector are approximately 70%.

As far as metals' price action is concerned, silver closed above its support levels and gold closed very insignificantly below our possible downside target $1,680 - and this move has already been invalidated (at the moment of writing these words gold is at $1,695). Gold touched its final Fibonacci retracement level (61.8%) based on the September - November rally, which means that the trend is still up (even though last week was not encouraging).

Please keep in mind that silver is approaching its cyclical turning point, which means that a turnaround becomes even more likely. We've also seen a spike in volume in the DIA ETF (proxy for stock market) which has been a quite reliable bottom-is-in signal in the past months.

Summing up, the short-term outlook for the precious metals market is bullish. If you have been waiting for a good buying opportunity, you may want to get into the market now.

As always, we'll keep you updated if anything changes.

Thank you.

Sincerely,
Przemyslaw Radomski