Markets Correcting

Aden Forecast, Weekly Update (06/24/2009)
"Most of the markets have been correcting. That goes for metals, oil, stocks and the currencies. This is normal following their quick rises in recent months. The markets were temporarily overbought, they're now taking a breather and they could decline further in the weeks ahead.

The exception is gold. Although it's been sluggish, gold's C rise is still technically underway and that'll continue as long as gold stays above $925 (basis August). We cannot rule out the possibility of a double B bottom, however, during the summer months. If $921 is clearly broken, for instance, we could possibly see the key trend near $882 tested. If so, you'd want to buy with both hands. Meanwhile, gold is firm above $925. Above $985, and especially above $1,004, it would be super bullish in a very strong C rise.

Silver is holding near a key level now at $13.80. It's showing strength above this level and a renewed rise would be underway above $14.90. The early June high near $15.95 could then be surpassed. Gold shares are holding firm. If the XAU index stays above 131, and especially above 137, gold shares are strong. Keep your positions.

Oil stopped rising but it's holding firm by staying above $66. But it would be strong in a four month rise even if it softens to the $60 level. Copper is similar to oil and its rise is solid above $2.08. The base metals like tin, zinc and lead, as well as platinum and palladium, are coming down as well, yet they are all still in solid, firm rises even if they soften more. Keep your energy and resource positions.

. .The U.S. dollar index has been basing above its June 2 low. While it's still weak below 83, don't be surprised to see the dollar strengthen a bit. It's temporarily oversold as it holds near its 65 week moving average. This means if it stays above .7840 and closes above .8110, it could rise to 83 but it would still be vulnerable and bearish. This means the currencies and gold could soften short-term."

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