Adens: Assessing the major trends

"Some August weakness wouldn't be abnormal and should be viewed as a great buying opportunity," say Pamela and Mary Anne Aden in their top-notch advisory, The Aden Forecast.

"One thing is pretty clear: most markets are overbought for the time being, but in the bigger picture they're clearly oversold (in an area that normally coincides with major market bottoms). 

"The stock market's major trend is clearly up, signaling stocks are going to rise further in the months ahead, and probably beyond.

"This secular bull market was also confirmed by Richard Russell's Dow Theory when the Dow Transportations surpassed their June high late last week. 

"For now, the market will remain very strong above the following levels: Dow Industrials 8550, Dow Transports 3300 and Nasdaq 1850.

"We recently recommended buying new stock positions in PowerShares QQQ (NASDAQ: QQQQ), iShares S&P North America Technology (NYSE: IGM) and iShares S&P Global Technology (NYSE: IXN). 

"Meanwhile, gold and silver are not overbought and the 'C rise' is still underway. August is another seasonally slow month for gold, so if we have more sluggishness it could be this month. 

"Gold has support at $920; let's see if it holds. Silver has support at $12.65. We recommend keeping your positions. We are set for the next wave up. Meanwhile, even though oil has come down, it's firm and solid above $60, and it has great potential."