Not much happened in the markets yesterday and what did happen was in tune with our previous indications, so there's little to comment on in today's message.

The USD Index corrected somewhat and the precious metals market didn't respond by rallying, which is a small sign of weakness for PMs.

Stocks were almost flat and are still likely to decline shortly.

Gold declined but miners didn't. The gold-stocks-to-gold ratio (HUI:gold) didn't move above/to the declining resistance line, so basically, the miners' strength didn't change anything.

Meanwhile, silver closed below the rising support/resistance line for the second day, "somewhat confirming" the breakdown. We would like to see a third daily close below the line to say that the breakdown has been confirmed.

All in all, the short- and medium-term outlook for the precious metals sector remains bearish.

To summarize:

Trading – PR: Short position in gold, silver and mining stocks.

Long-term investments: 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

Stop-loss orders for the above-mentioned speculative short positions:

• Gold: $1,392
• Silver: $23.90
• HUI Index: 268
• GDX ETF: $28.80

As always, we'll keep you - our subscribers - 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) 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