Seeing a Market Alert in your email inbox on the day that a Premium Update was published usually meant a change in the trading or investment positions. Relax, this time it's different - we simply want to comment on the price volatility that we saw today.

Wednesday's rally has already been erased in case of silver, it's been almost erased in case of mining stocks, and half of it was corrected in case of gold. This is not surprising - as we mentioned in today's Update, the situation was unclear on a short-term basis (and it still is) but the medium-term trend remains down. The latter means that most surprises should be to the downside and that's the kind of price moves that we should be focusing on until the trend reverses.

Is the rally over yet? We realize that you would like to read a clear call, but we have to call the situation exactly as we view it and it's still unclear. The USD Index has been trading in tune with the True Seasonal patterns for months and even though it assumed a pullback (you can see it in today's update as well), it also suggests weakness more or less until the end of the month. With declining USD, we could see higher gold, silver and mining stocks (it's unclear, but still more likely than not). If metals and miners rally on very weak volume - which might be the case after several days, we will have a confirmation of the next big price move and a great opportunity to enter a short trade. That's just a speculation on our part - things may develop differently (and we'll keep you updated), but that's a quite probable scenario and we wanted you to give an early heads-up.

Trading – PR: No positions.

Long-term investments: A half position in gold, silver, platinum and mining stocks. As far as long-term mining stock selection is concerned, we suggest using our tools before making purchases: the Golden StockPicker and the Silver StockPicker

Thank you.

Sincerely,
Przemyslaw Radomski, CFA