Metals and miners rallied today and our stop-loss orders were triggered for both parts of the precious metals sector. We didn't change the stop-loss orders recently as we wanted to keep that safety net intact and close. Consequently, we no longer suggest having any speculative positions opened in the precious metals market. Please keep in mind that trading is managing probabilities and nobody can win all the trades. The goal is not to aim for winning all of them, but to make money over time thanks to maximizing the number of profitable positions and at the same time limiting the risk and losses on the losing ones.

What's next? The short-term situation is unclear because of all the bearish factors mentioned in today's Premium Update and given today's strength. Consequently, we don't suggest opening any speculative position. The USD Index is once again at its medium-term support line and stocks can rally shortly as well. This could still be the case (and it's still quite likely in our view) that precious metals plunge in the coming weeks (thus long positions seem risky). On the other hand, the current momentum makes opening short positions too risky as well.

If the strength continues tomorrow, we might suggest getting fully long with the long-term investments before the markets open on Monday, however, it's too early to say that based on today's price moves.

Please recall that we suggested getting back with half of your long-term investments in case of gold and platinum on June 20, when gold closed at $1,277, we suggested going long (half of the capital) mining stocks on June 27 (HUI closet at 211) and we suggested going long silver (half of the investment capital) on July 8, when it was at $19.

To summarize:

Long-term capital: Half position in gold, silver, platinum and mining stocks.

Trading capital: No positions

As always, we'll keep you updated should our views on the market change. We will continue to send out Market Alerts on a daily basis (except when Premium Updates are posted) at least until the end of August, 2013 and we will send additional Market Alerts whenever appropriate.

As a reminder, Market Alerts are posted before or on each trading day (we usually post them before the opening bell, but we don't promise doing that each day). If there's anything urgent we will send you an additional small alert before posting the main one.

Thank you.

Sincerely,
Przemyslaw Radomski, CFA