This is a speculative sell alert, as we believe that keeping an open speculative (!) long position in the metals is no longer justified from the risk/reward point of view.

We don't want to get into details in this alert, because there's not much time until the end of the session and we want to send this message as soon as possible. We didn't send it out earlier, as we've been waiting for a confirmation in the form of low volume in PMs or - which is just as important at this point - in the SPY ETF. The general stock market appears to be topping here, or at least the risk of a temporary downturn is high. Given the high short-term correlation between the general stock market and precious metals this means that the risk of a move lower in the metals (and corresponding equities) is also high.

Consequently, we don't think that betting on higher short-term prices of metals is worth the risk - that is at this point (especially given that metals are now much higher than when we suggested purchasing them in the Feb 6th Market Alert.)

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Sincerely,
Przemyslaw Radomski