--> Gold, silver, and the gold and silver shares soared today as the potential for even lower U.S. interest rates pushed the dollar down. Gold's C rise has begun. Since C rises are the strongest in the cycle, gold is now poised to rise to a new bull market high before it's over, likely to near the $415 level. The rise will now remain underway with gold above $348. The B decline was classic in both time and price with gold hitting its low at $342.20 on July 15. Plus, with gold shares and silver showing unusual strength for the first time in a year, they too appear to be anticipating the best upcoming rise. HUI closed at a new high today while XAU is near its high. Both are now very strong above 150 and 78, respectively. Newmont is the leader as it closed at a new high today, breaking out of a six year head and shoulders bottom formation in the process. The XAU will likely soon follow and if you haven't finished buying all your gold shares, buy now.
Silver shot up to a one year high today, taking silver shares with it. It's strong above $4.80 and if it closes and stays above its last resistance at $5.10, the upside is wide open. Silver Standard (SSRI) is the best performing silver share. Buy this and as we said two weeks ago, buy silver. Platinum is also very strong, closing above its March high today. It's very strong above $685.

The stock market's 19 week rise continues to chug along. It's been five weeks since the Dow Industrials reached a high at a time when the market is overbought. The Dow must now close above it's June 17 high at 9323 for the rise to continue. But if the Dow closes and stays below 8990, the rise will be over. Nasdaq is strong above 1680, but if it closes below this level and the Utilities stay below 238, it'll be another sign that the rise is over. If you have DIA, QQQ or SOXX, sell if the 4% trailing stop is broken.
Mexico and Japan look good, but the world markets are rolling over. Stay out.

Bond prices fell further this week. Both the 10 and 30 year yields closed above 4.10% and 4.98%, respectively, indicating the major bond prices trend is turning down and triggering our sell signal. If you sold your bonds, stay out. But since the sell signal is coming at a time when bonds are the most oversold ever, we'll likely now see a short-term bond price rise. Therefore, if you haven't sold, wait to sell your bonds on strength. The 10 year yield could easily decline to 3.60% and possibly lower while bond prices rise. Also important, in this era of ultra low interest rates, bonds are a good income source if you hold them to maturity. So long-term bond holders may choose to hold on, especially since the super big picture for bonds is still bullish.

U.S. dollar is coming down again. If the dollar index now stays below last week's high at 97.22 (Sept), and closes below 95.40, the five week rise is over. And if it is, the dollar is very weak in the big picture because it couldn't even rise in a decent rebound. It looks like the currencies are starting a renewed rise. If the euro now stays above 1.14, as well as the Australian and New Zealand dollars above.6470 and.5750, respectively, a renewed rise will be underway. Keep your positions. If you haven't finished buying new positions yet, buy now.

Warm wishes and until next week,
Pamela and Mary Anne Aden