Adens See Stocks Rising Higher

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...And in their latest issue, headed "Next Stop ... the Stratosphere", the Aden sisters have reacted decisively. They write: "The market has spoken and the message is very clear ... Since the stock market looks ahead, it's telling us that it sees better times ahead. It's saying that existing problems will be worked out and good times will prevail.'

Are stocks in a new era? (I keep asking this question). Another hard-assets letter is going with the equity flow - for now. The Aden Forecast, edited by Mary Anne and Pamela Aden, first came to fame in the great gold bull market that peaked in 1980. And it's been doing well in the new gold bull market that began in 2001. Over the last 5 years, according to the Hulbert Financial Digest, the Aden Forecast is up an annualized 14.78% vs. 9.65% for the dividend-reinvested Dow Jones Wilshire 5000.But over the last 12 months, as gold has staggered and stocks surged, the Aden Forecast is up only 2.99% vs. 14.52% for the dividend reinvested Dow Jones Wilshire 5000. And in their latest issue, headed "Next Stop ... the Stratosphere", the Aden sisters have reacted decisively. They write: "The market has spoken and the message is very clear ... Since the stock market looks ahead, it's telling us that it sees better times ahead. It's saying that existing problems will be worked out and good times will prevail.'

...Gold is a different story. In the long run, inflation has to be good for it too. But the Adens are worried about its short term action. Last week, in their fluent chartspeak, they wrote: "It's time to watch gold closely. If gold basis June now stays well below $670 for a week ... then the C rise will be clearly over and it will have been the first C rise in the six year old bull market that failed to reach a new high. That's not necessarily a bad sign but it would be a sign of change."...

"It's also important to keep in mind that gold's major trend remains solidly up above its 65-week moving average now at $628."

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