As you have probably noticed, we have experienced technical problems with our website/server on Friday and we apologize for the inconvenience. The situation is now stable, and we have upgraded our software and we will be moving to two servers instead of one, to limit the probability of a similar situation happening again.

The issue turned out to be much more complex than we initially believed, and it was not possible for us to even send out a notification or any other message (like an alert with links to our other premium services). Since there was 1 day in which we weren't able to send you what we promised earlier, we decided to continue providing these services to you for 3 additional days. You will continue receiving them (in addition to regular Market Alerts) until Wednesday. Of course you can read Friday's alerts using the links below:

• Bitcoin Trading Alert: Drifting Up, Waiting for Action
• Forex Trading Alert: U.S. Dollar Improves Against European Currencies
• Stock Trading Alert: Stocks correct their recent advance
• Oil Trading Alert: Crude Oil Declines Sharply

Below you will find the Market Alert that we are sending based on Friday's closing prices. We promised to send it on Monday, but it seems that sending it earlier might be very useful to you.

Gold moved higher, above the short-term declining resistance lines, but it remains below the previously broken rising long-term resistance line (currently at $1,250). This means that it could rally to it and still be likely to decline significantly before the next significant upleg. The medium-term trend remains down.

From the non-USD perspective, gold moved to the rising support line, based on the June and October bottoms, without breaking it. No changes here.

Silver moved higher, and closed the week at the upper of the long-term resistance lines. It is still below the medium-term declining resistance line, which is currently at $21.

The HUI Index moved higher this week and the current move up is quite similar to the one that we saw on Dec 10, 2013. The medium-term resistance line (based on Jan 2013 and Aug 2013 tops) was not broken (it was not even reached) that is likely to stop this rally is currently close to the 220 area.

The HUI to gold ratio moved higher, but not above the declining resistance line (the one based on Oct 2012, Jan 2013, Aug 2013, and Oct 2013 tops).

It seems that we are close to another local top in the precious metals market, similar to the one that we saw in late October. It also seems that metals' and miners' recent rally was to a considerable extent explained by the weakness on the general stock market. Investors seem to have bought gold after they saw stocks decline significantly first time in 2 weeks. The fact that the USD Index is likely to move much higher shortly is more important in our view.

The USD Index rallied as we expected it to. It seems that it's a beginning of a bother bigger move up, perhaps similar to the October - November one.

Please note that in late October USD rallied but precious metals didn't respond immediately to this move. The reaction, however, was not absent - it was merely delayed.

On a short-term basis, however, gold's strength last week along with dollar's move higher is a bullish sign. It seems we could see some kind of strength in the sector that will provide us with a good shorting opportunity - better than we have right now.

Therefore, we suggest being / moving out of the market with the speculative capital right now and preparing to re-enter the short positions in the precious metals sector. We will let you know when we think it's a good idea to open these positions. For now it seems that it will be when gold is closer to $1,250 and HUI closer to 215.

To summarize:

• Trading capital: No positions.
• Long-term capital: No positions.

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.

The trading position presented above is the netted version of positions based on subjective signals from your Editor, and the automated tools (SP Indicators and the upcoming self-similarity-based tool). You will find more information by following links in the summary of the latest Premium Update.

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