Silver just moved below $32.70, which triggered the stop-loss orders that we mentioned in the past several alerts and the latest Premium Update. Therefore, we suggest closing half of the speculative position in silver. If the HUI moves below 430, we will suggest closing half of the speculative long position in mining stocks.

Why are we suggesting closing only half of the long position in silver (the following part of the message is a quote from yesterday's Market Alert)? Because according to the Gold & Silver Portfolio principles:

http://www.sunshineprofits.com/research/key-insights/portfolio-structure/

we believe that the trading capital should be split between part dedicated to our subjective analysis and objective signals from the SP Indicators. As far as the latter are concerned, we just saw a buy signal from the SP Extreme #2 Indicator, which suggests being long for 2 weeks without placing a stop-loss order for this trade.

You can examine details and reasoning for this approach on the following pages:

http://www.sunshineprofits.com/services-products/charts/sp-indicators/details-and-performance/

http://www.sunshineprofits.com/services-products/charts/sp-indicators/stop-loss-details/

We - subjectively - expect to send you a "get back to full long position" alert soon, however for now we believe sticking to our original "play it safe" approach is a prudent thing to do. This means following the stop-loss orders and getting partially out of the speculative long position in silver and being ready to exit half of the speculative long position in silver and mining stocks.

We believe that long-term investments in the precious metals sector should be left intact.

As always, we'll keep you updated should our views on the market change - even if it means sending another message in several minutes.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA