We believe that a quick speculative transaction might be a good idea at this point. The bet is on higher values in mining stocks (for instance in GDX ETF) in the following days. This is something for Speculators who have time to react to our Market Alerts within one hour or so, as the move may be short-lived. If you can't check the market / e-mail at least several times a day, we would suggest ignoring this alert.

The final bottom for this decline may or may not be in, but at least a short-term bounce form here is likely. There are four factors pointing to a very short-term rally:

1. SP Gold Stock Extreme Indicator moved above its upper dashed line and this action meant a local bottom virtually every time we've seen it since the 2008 bottom. Accuracy this big should not be ignored. Please take a look here:

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

and click on the chart to enlarge it. Note that when the red line crosses the upper dashed line a short-term rally follows.

2. The SP Gold Stock Bottom Indicator flashed a buy signal.

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

3. The HUI Index moved to its 2008 highs after having declined sharply. This factor alone makes us expect some kind of bounce.

4. The GDX ETF moved to its 200-day moving average, which marked local bottoms many times in the past.

What about gold and silver? They could bounce as well, however the above-mentioned indicators were designed to time mining stocks' moves, not the ones in metals, so the risk/reward rate is more favorable for mining stocks. Simply put, we have more information about mining stocks, so the risk part is smaller.

Since this will most likely be a quick transaction, we suggest using only a small amount of capital for it - perhaps half of what you used for the previous speculative transaction.

As always, we will let you know should anything change.

Thank you for using the Premium Service.

Sincerely,
Przemyslaw Radomski