In the previous Premium Update I wrote about one of our indicators - SP Short Term Gold Stock Bottom Indicator. I wrote the following:

"We may soon have a favorable buying opportunity, as this indicator turns up. Naturally, many factors need to be considered (definitely more than one indicator), but given the extraordinary performance of this particular technique, one should not ignore it."

I'm sending this update, because the abovementioned indicator has just flashed a buy signal. Since I mentioned this indicator in the Premium Update and also in the free commentary, I believe that many investors were waiting for its signal - that's why I decided to send out an alert with additional details. Before opening new long positions here, please take a closer look at the way this signal worked in the past.

The name of this indicator contains the phrase "Short Term", and this is not a coincidence. Taking a closer look at its performance reveals that it is most efficient in the short run. The "additional factors that need to be considered" that I refered to earlier, are other techniques of analyzing the precious metals market, such as time and price levels that are likely to stop this corection. For now, neither the time factor, nor support levels have been reached. The signal from our indicator is the only thing that points to higher prices in the very short term.

Summing up, it seems that we will have a pause in this correction, but it doesn't mean that it's over yet. In the past I have emphasized that corrections in the precious metals stocks often materialize in the ABC (zigzag) fashion. Currently, the most likely outcome in my view is that we are about to see the B part of the ABC correction - a small pullback to the upside, after which PM stocks would go lower in the short term.

This means that if you want to keep near 100% exposure to PM market at all times are were waiting for at least a smallest signal that the correction is over, or you are a Day-Trader, you may want to consider puchasing PM stocks here. Naturally, Day-Traders will need to monitor the market for the most profitable exit point. Although I have entered and exited positions on the same day a few times in the past, I don't consider myself a Day-Trader and I'm not entering a speculative long position here yet.

As far as the long term is concerned - there are no changes, the outlook remains positive

Sincerely,
Przemyslaw Radomski