For those of you like me wondering what in the world is going on and hating to see that red in your accounts, I thought I would share the Aden's update for this week. Let's just hang in there.....they have a terrific record and Peter has been far more right than wrong....hope you enjoy......susan

Week of January 20, 2010

VOLATILITY SETTING IN

Financial woes are weighing on the markets today. Greece's fiscal crisis, China's move to curb lending, and the Bank of America's wider than expected quarterly loss are all pushing the U.S. dollar higher. Stocks, commodities and riskier high yielding assets are taking a back seat.

The U.S. dollar index has been rising for eight weeks now. Today's upmove reinforces that a rebound rise is underway by staying above 76.50. It could rise to the 79.50-81 level but it would still be in a bear market. The euro was hardest hit by the Greek problems, falling to a five month low today. The Canadian dollar, however, is still firm above .9480 (see Webextra). The Australian dollar is also firm above .9000. Keep your positions but don't buy new ones yet.

The precious metals and resource sector remain firm, in spite of today's moves (see Webextra). Platinum and palladium continued to soar reaching 17 month highs yesterday, and they could still be leading the way for gold and silver. Platinum and palladium are extremely strong above $1520 and $410, respectively, while gold and silver are firm above $1100 and $17.40, respectively.

Copper is holding firm since reaching a high on January 6 while oil is more sluggish, yet it's strong above the $74 to $76 level. Keep your positions. Keep in mind, gold's intermediate rise is near maturity. If gold closes and stays below $1090 the C rise will be over and it could drag the other metals and commodities with it. Keep your positions for now.

This week, interest rates (long-term) have been resisting at a critical juncture. In our January issue we pointed out why 4% on the 10 year yield and 4.64% on the 30 year yield were very important mega trend levels. Since they are so important, it's not unusual for these rates to resist and this could continue for a while (see Webextra). So let's keep watching these markets and don't trade one way or the other for the time being.

The stock market fell today on disappointing earnings, but the decline was insignificant (see Webextra). The major trends remain solidly up, and within those trends the stock market will continue to be strong above 10250 on the Dow Industrials, 4000 for the Dow Transportations, 2200 on the Nasdaq and 1100 for the S&P 500. For now, a further downward correction is still a possibility, but if the stocks indices stay above these levels the corrections will definitely be moderate. Keep your stock positions.