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Quote of the Day

Friday, January 20, 2012

January 20, 2012 -- According to King World news, there's a shortage of physical gold and silver. Huge paper short positions on the COMEX are getting squeezed, which is why both metals have been holding or rising with the strong dollar. Naked short positions on the COMEX are so squeezed that they have to borrow from the SLV. "They are still unwinding, and they have a long way to go." says KING. "The physical gold demand is off the charts, and it's creating shortages of the metal, in size, here in London."

 

Turning to the stock market, stocks are climbing on bullish economic reports. Stocks are rising on fundamentals, when it is usually the other way around -- rising stocks precede improving fundamentals.

 

How it all ends remains a mystery to this veteran, but there's always something new added to this business.

 

TODAY'S MARKET ACTION:

 

My PTI was up 2 at 6364. The moving average at 6322, so my PTI is bullish by 42.

 

The Dow was up 96.50 to 12720.48.

 Transports were down 21.12 to 5280.75.

 

Utilities were up 1.30 to 448.54.

 

NASDAQ was down 1.63 to 2786.70.

 

S&P 500 was up 0.88 to 1315.38.

 

February crude was down 2.19 to 98.20.

 

Total Volume on the NYSE and associated exchanges was 3.9 bn.

 

There were 1746 advances and 1260 declines on the NYSE.

 

There were 127 new highs and 14 new lows.

The Big Money Breadth Index was up 5 at 989.

 

Bonds: Yield on the 10 year T-note was 2.03. Yield on the long T-bond was 3.10. Yield of the 91 day T-bill was 0.04%.

 

Dollar Index was down 0.06 at 80.15. Euro was down 0.12 at 129.25. Yen was up 0.31 at 129.98. Currency Prices as of 1 PM Pacific Time.

February gold was up 9.50 to 1664.00. February silver was up 1.13 to 31.67.

 

My Most Active Stocks Index was up 4 at 269.

 

GDX was up 0.03 at 52.18.

 

HUI was down 0.49 to 502.57.

 

CRB Commodity Index was down 2.05 at 309.91.

 

The VIX was down 1.59 to 18.28.

Permanent Portfolio Fund (PRPFX) was up 0.10 at 47.80 (previous day closing). YTD Return: 3.71%.

 

 

Late Notes -- A strong stock market, strong dollar, improving fundamentals.

 

Dow and gold creeping higher along with silver and the dollar.