--> It still looks like gold's D decline is over, but it's not out of the woods yet because it failed to stay above $414. Plus, gold and the XAU and HUI are not yet oversold. But if gold stays above $406 and goes on to close above Tuesday's high at $416.20 basis March, the D decline will be over, which would show great strength for the bull market because the D decline has been moderate so far. Silver has been stronger than gold and it shot up yesterday closing at a new high for the bull market. Silver is very strong above $6.30 and it could rise to $7 short-term even though it's overbought. Platinum is testing its January high and it's very strong above $820. Copper continues to surge while oil shot up. Both are very strong above $1.20 and $33, respectively.
Gold shares have been under pressure for 2½ months now. The last two week rise, while impressive, still needs to prove itself before a clear renewed rise is underway. Keep an eye on 213.80 on HUI and 94.05 on XAU. If they hold above these lows posted on Jan 29, it'll be a good sign. But once they close above Tuesday's highs at 242.03 and 105.23, respectively, the two week rise will continue. Silver shares have soared. Continue to buy and keep your gold and silver positions. Also buy palladium and North American Palladium (PDL.TO) or (PAL) on Amex.
The stock market is mixed. Utilities reached a new high today but Nasdaq and especially the Transportations look like the peak is behind them. Transports peaked four weeks ago on January 22 and it's been below its 15 week moving average, now at 2960, for three weeks. Plus, its leading indicators are breaking down. As you know, the 15 week moving averages have been the key in identifying the 11 month rise and it looks like the Transports is leading. Keep an eye on the 15 week moving average on the other indices. If they break below these levels, the rise will be over. The averages are now at 10270 for the Dow, 2010 for Nasdaq and 1105 for S&P 500. If you
have DIA and SPY, sell if your 4% trailing stop is broken.
Bonds have been quiet this week. They're neutral but they still have the tendency to rise short-term. Bonds will remain neutral and quiet with the 10 year yield between 3.96% and 4.20%, but whichever way it breaks will determine the next short-term trend direction. Meanwhile, bonds continue forming a major top.
The world equity markets are mixed. Mexico and Hong Kong, for example, are at new highs while many others are rolling over. Stay away for now.
The U.S. dollar index fell to a new low yesterday and even though it rose today, it'll remain weak even if it rises to 88.10. The dollar has room to rise in a breather rise, but so far it's not happening which shows weakness. The British pound, Australian and New Zealand dollars closed at new highs on Tuesday. The currencies are still overbought but they'll remain strong even if they decline to 1.84 British pound, 1.24 euro,.7550 Aussie and.6622 Kiwi. The yen fell today. A close below.9300 means a steeper decline is underway. The five week decline in the Canadian dollar could take it to its major support at.7420. Continue to buy new positions.

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