--> What a week! Gold, bonds and the currencies soared while the dollar and stocks fell.

Gold shot up over $5 today, following Monday's rise of $9.50, and it's now up 15% or $50 in six weeks. The A rise is well underway and gold is quickly approaching its February high. Remember, normally A rises can test the previous high, but gold doesn't usually reach a new high. So keep an eye on the closing February high at $380. If gold closes above it, the bull market is very strong. The A rise will remain in process by staying above $350 and based on timing, the rise could last until mid June to early July. Based on the last two A rises, mid-June would be the more likely time. Gold shares are finally moving more in line with gold. Both XAU and HUI closed at four month highs today and they're strong above 70 and 133, respectively, and they could rise to their January highs. Keep your gold and gold shares. Platinum also shot up to a nine week high today; it's strong above $650. Copper is also rising and it's strong above $.75. Oil is bullish above $28.50. Silver, however, declined today, but it's still strong if it stays above $4.70.

Bonds continue to soar as the yields fell to further 45 year lows. The falling yields are starting to close the wide gap between short and long-term rates, which is deflationary. Bonds are now overbought on a short-term basis, while they have room to rise further on a medium and long-term basis. Bonds are very strong if the yields stay below their March lows at 4.61% on the 30 year and 3.55% on the 10 year. Keep your higher 20% position in over 10 year government bonds and TLT.

The U.S.dollar continues its waterfall decline as the dollar index quickly approaches its 1998 low near 92. The dollar is now near a short-term oversold level, but it still has room to decline further on a medium and long-term basis, and it's very weak below 96.50. The Dollar may temporarily hold above 92 as it's fallen fast (down 8% in six weeks), but if the 1998 low is clearly broken, the dollar will be entering an even more bearish phase. The euro, Swiss franc, Canadian, Australian and New Zealand dollars are soaring! They're extremely strong above 1.1350,.7540,.7150,.6360 and.5700, respectively. They have risen far and fast (euro up almost 10% in six weeks), which means some type of breather would be normal. Keep your positions, as well as the ICPHX, FCO, GIM and FAX funds.

Stocks are feeling the heat from the falling dollar and soaring bonds. And it looks like the 10 week rise is over if the Dow Industrials now stays below the May 12 high at 8726. Plus, if the Dow Transportations now stay below 2415, it'll be a weak sign because it'll be the first time the average has closed below its 5 week moving average since the rise began in March. In addition, with the S&P 500 still well below 970, it's a weak sign. Amex is strong, but if the less impressive Dow now stays below the May high, the rise is over. If you have DIA, QQQ or SOXX, sell if the Dow closes below 8480.

The world equity markets are also rolling over. Stay out.
Warm wishes and until next week, Pamela and Mary Anne Aden