--> Gold popped up this week while gold shares are holding firm near the highs. This is a strong sign for the upcoming C rise. But the B decline is still underway as long as gold stays below $357 and it could last a while longer. B declines tend to be moderate and last week's gold decline to $344 is the ideal moderate decline. But let's keep an eye on $357 and $344 because whichever way gold breaks will tell us if the B decline is over, or if further weakness is in store. HUI and XAU are very strong above 146 and 76.30, respectively. Gold shares are holding stubbornly strong, which means buying your new gold positions gradually over the month is the best strategy. Silver is looking better. It's firm above $4.53 and it would be stronger above $4.65. Platinum remains strong above $660 as is crude oil above $29.

The Australian and New Zealand dollars are soaring aided by unchanged interest rates in Australia yesterday. High interest rates have been giving a boost to these currencies, as well as to the Canadian dollar. They are very strong above.6630 Aussie,.5800 Kiwi and.7350 Canadian. Meanwhile, the U.S. dollar index is rebounding and it's firm short-term above 94. It could rise to 96.50 or possibly even 98 and still be weak in the big picture. The euro and Swiss franc are declining while the dollar rises and they're vulnerable short-term to a further decline by staying below 1.165 euro and.7550 SF. The euro could decline to 1.13 and still be strong. The British pound is holding up better; it's strong above 1.6560. Keep your positions and buy new positions over the month.

The stock market's 16 week rise is stalling. But with today's upmove, especially in Nasdaq as it rose to an over one year high, there still may be more life to the rise. Nasdaq is very strong above 1620. The Dow Industrials dipped below its 5 week moving average, but it's above it once again. If the Dow stays above 9100 and closes above its June 17 high at 9323, it still may have a chance to reach 9500. Keep an eye on the high. The Dow Transportations is far from its June 4 high at 2556, which is a bad sign for the rise in general. A sustained rise must take all indices to new highs. If not, the rise will be losing steam. If you were stopped out, stay out. If you have DIA, QQQ or SOXX, keep a 4% trailing stop and sell if it's broken.

Bond prices continued to decline this week and the 2½ week fall is now oversold short-term. The downward correction in bond prices will remain underway as long as the yields stay above 4.35% on the 30 year and 3.25% on the 10 year. If the yields stay below 4.65% (30 year) and 3.65% (10 year), the bond decline may be coming to an end. Keep your bonds because the major trend remains clearly up.

Japan's Nikkei jumped up today to a 9½ month high. It's now strong if it can stay above 8900. Mexico is holding firm near an over one year high. Otherwise, the world markets are chugging. Let's continue to watch from the sidelines.

The July issue will be e-mailed and faxed on Friday, July 4. It will be mailed next week.
Warm wishes and until next week, Pamela and Mary Anne Aden