Markets were mainly higher this week, with gold stocks and silver the only exceptions.

Bitcoin more than made up for last week's losses, gaining 18.8% to close at 2.67 g. Trading volume was light this week, averaging only 73 kg per day.

Although all the government currencies were strong this week, the Japanese Yen and the USD traded places, with the JPY up "only" 4.5% while the USD led the pack rising 7.4% and ending the week a stunning 51% above it's half-life curve. If you haven't yet taken advantage of the dollar's extreme overvaluation, please consider how best to benefit from it. For now, I recommend physical precious metals, especially gold and platinum. This will help you keep your powder dry for the time when silver, gold stocks, and other undervalued investments have formed their bottoms.

Bonds were higher, but this week the short term SHY gained 7.2%, mirroring the strong dollar, while the long term TLT lagged, gaining 2.3% to close at 2.6 g. Technically, TLT continues to trade back and forth above and below its support/resistance at 2.55 g, and could break either way. But the Fed's comments on the future "tapering" of QE are certainly weighing heavily on the price of long term bonds, as they mean that interest rates will be rising, which in turn means that the market value of TLT's bond portfolio will be falling. If the value of the dollars in which those bonds are redeemable falls as well, we could see a crash of biblical proportions. Although bonds may continue higher from here, the risks of holding them far outweighs any likely upside.

Stocks, other than the HUI Gold Bugs Index, rose strongly, led by the Nikkei which gained 9% to close at 3.26 g. US equities rose less than USD cash, but still managed a respectable 5.5% gain for the Dow Jones Industrials, and 5.1% advance for the S&P 500. I am very cautious about US stocks, as they may be following the pattern of the last half of the 1970s, where they experienced a strong bear market rally before falling to new lows. 

Gold stocks fell hard, losing 5.1% to close the week at 5.54 g after trading at 5.49 g on Thursday. This leaves only a little technical support around 5 g between here and the old low at about 4.2 g.

Commodities were mostly up this week, led by coffee and copper which rose 4.3% and 4.1% respectively. Crude oil gained again this week, adding 2.8% to close at 2.25 g/barrel, approaching resistance at 2.4 g. The only loser was Silver, which continued last week's plunge, falling 1.6% to a new low for this move of 0.477 g. Technically, silver may find some support between 0.43 and 0.45 g, or at its 2008 low of 0.368 g.

Markets were mostly higher this week, led by the commodities. Cotton and crude oil advanced the most, while Bitcoin showed the greatest weakness.

Bitcoin dropped 12% to close at 2.5 g. Trading volume is beginning to grow again, averaging almost 100 kg per day.  Expect more volatility as volume increases.

All of the government issued currencies were higher this week, led once again by the Japanese Yen, which rose 3%. The Euro was in second place, rising 1.8%  to close at 29.5 mg. The USD was the least strong, adding 0.6% to close at 22.4 mg, leaving it a lofty 40.2% above it's half-life curve.

Bonds were mixed, with short term SHY rising 0.6% along with the dollar, while the long term TLT fell 0.3% to close at 2.54 g. TLT continues to straddle support/resistance at 2.55 g, and could break either way.

Stocks were also mixed, with US stocks about 1.5% higher while the Nikkei fell for the third consecutive week, giving up 3.7% to close at 2.93 g. The HUI Gold Bugs Index was also lower, dropping 1.3% and ending the week at 6.05 g, barely above the critical 6 g level.

Commodities were strong this week, with Cotton, up 7.6%, and Crude Oil, up 5.1%, leading the way. Platinum also advanced, rising 3.9% to end the week at 33.8 g, 8.6% above parity with gold. Coffee and copper each gained 0.5%, while silver rose 0.7% to finish at 0.507 g/oz.

The markets were mixed this week, with most asset classes lower. The biggest exception was gold stocks, which continued their advance for a second week.

Bitcoin gave back some of last week's gain, dropping 1.6% to close just below 2.9 g. Trading volume continued very light throughout the week, but picked up over the weekend. Although prices have been fairly stable for the last few weeks, you should expect more volatility as volume increases.

The Japanese Yen was the strongest of all the currencies, gaining 0.9%, with the Euro in second place, rising 0.5%  to close at 29 mg. The USD was lower by 0.3% to 22.3 mg, leaving it 38.9% above it's half-life curve – unchanged from last week.

Bonds were lower, with short term SHY dropping 0.4%, while the long term TLT fell 2.3% to close at 2.55 g. TLT is now sitting right on support/resistance at 2.55 g after touching 2.53 on Thursday. This level has been pivotal many times over the last 5 years. Stay tuned for more exciting bond action!

Stocks were mostly lower, led by the Nikkei, which lost 4.9% for the second straight week to close at 3.04 g. The HUI Gold Bugs Index was the only rising equity class again this week, gaining 7.9% to close at 6.12 g – its best showing in the last 5 weeks. Like long bonds, the HUI sits at a crucial level. It will be interesting to see whether gold stocks can continue to rally, or if they will resume dropping towards their old lows.

Commodities were mixed this week, with Silver climbing 0.5% and Platinum unchanged, while the rest declined. Cotton, down 2.9%, and Crude Oil, down 2.6%, led the decliners.

This week most markets made gains, with the exception of gold stocks. Coffee and Bitcoin were especially strong.

Bitcoin rose 7.2% to close at 2.76 g. Trading volume has been declining for the last several weeks. It is encouraging that the seizure of Mt. Gox US bank accounts by the DHS did not spark a selloff. Still, expect continued volatility!

Among the government currencies, the JPY was weakest, gaining 1.3%, while the USD was the strongest, rising 4.2% to close at 22.7 mg; this is 40.6% above its half-life curve, and continues to present an excellent selling opportunity for those still holding USD assets.

Bonds were higher, with short term SHY gaining 4.2% (tracking the underlying USD), while the long term TLT rose 2.7% to close at 2.66 g. This is the bounce off of support at 2.55 that we were looking for last week, so we are now watching for follow-through to surpass the recent high at 2.74 g and signal a breakout that could run to 2.9 g or more.

Stocks were mostly higher, led by the S&P 500, which gained 6.4%. The HUI Gold Bugs Index was the only declining asset class this week, but it was a doozy, falling 8.4% to close at 5.6 g and setting a new low for this move down. This establishes the 6 g level as resistance, with little support in sight until the old low at 4.2 g. It will be interesting to see if future weakness in the USD and a resurgence in demand for gold leads to a dramatic recovery of the HUI, or simply pushes it lower with other stocks.

Commodities were all higher, led by Coffee, the biggest winner of the week, up 9%. Silver was the least changed, gaining 0.4% to close at 0.512 mg/oz.  Platinum rose 2.8% to close the week at 33.4 g/oz, now 7.4% above parity with gold, a breakout to levels not seen since August of 2011. Expect to see resistance at 37g/oz.