We've summarized the latest message in the following way:

"If we didn't suggest you exiting the market with your speculative (!) capital on Friday, we would have done so in this message. Again - the risk/reward ratio is no longer favorable enough to justify long speculative position in metals, because the risk part is now much bigger than it was on January 25th, when we suggested opening speculative positions in metals."

Before moving to the main point of this alert, we would like to re-assure you the above is up-to-date. We might suggest opening a short position if the situation gets even more bearish in the short term, but that's not the case yet.

We also wrote the following:

"We believe that no adjustments in the long-term capital are necessary at this point. As always, we will keep you updated, should anything change."

You have received this message, because there is a change regarding the long-term capital - namely, the part dedicated to juniors. In short, we believe that this is a good moment to switch from junior mining stocks to bigger, senior mining companies. Aggressive Traders/Investors may want to cash out of juniors, but this is not what we suggest at this point, as we believe that long-term (!) capital should remain invested in the precious metals market.

What changed? The situation on the general stock market is much more bearish than just a few days ago. Stocks had been overbought for a long time and the correction had to take place sooner or later. Still, the buying power had been strong until recently, when financial stocks started their own decline. The situation has become much worse - technically - and the recent tragedy in Japan served as a catalyst for decline's acceleration.

As we have mentioned many times in the past, the general stock market is more correlated with the junior sector than it is with big senior gold and silver producers. This is why the proper response to the current situation on the general stock market is moving at least a part of your capital that is currently invested in juniors, to seniors. This way, the current decline in stocks will likely affect your portfolio in a less meaningful way.

Naturally, you may verify the above yourself by going to the Tools section on our website, selecting Correlation Matrix, and putting your mouse cursor over the CDNX / S&P (stocks and juniors) and HUI / S&P (stocks and seniors) rows.

http://www.sunshineprofits.com/tools/correlations-matrix

Moreover, our SP Junior Long-term Indicator has been suggesting switching from juniors to seniors for several weeks, but we decided to temporarily ignore its signal based on the positive situation in the main stock indices. Again, the situation in stocks is no longer positive.

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

Thank you for using the Premium Service.

Sincerely,
Przemyslaw Radomski