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Quote of the Day

Monday, January 23, 2012

THE MOST RECENT DOW THEORY LETTER HAS JUST BEEN POSTED TO OUR SITE

 

January 23, 2012 -- The character of the market has been improving. Lowry's Buying Power Index has risen a bit and their Selling Pressure has dropped noticeably. This means that there is less supply overhanging the market and the willingness to buy has increased.

 

On top of this my PTI has been climbing steadily due North, and as I've always said, my PTI is smarter than I am.

 

Gold is stopped at its 50-day MA, and I am watching for a breakout into the 1700s. I understand there are huge short positions on the Comex, and the shorts are feeding out a mass of paper shorts in a do-or-die battle to hold the prices of silver and gold down.

 

Last week, despite the strong dollar, silver surged and closed above its 50-day MA. It may be that the action of strong silver will rub off on gold, taking gold above 1700.

 

 

 

 

In the face of improving economics, Joe Granville's on-balance-volume figures remain bearish, and Joe is looking for a wicked summer.

 

The dividend yield for the Dow is 2.51% deep in overbought territory.

 

TODAY'S MARKET ACTION:

 

My PTI was down 2 at 6362. The moving average at 6323, so my PTI is bullish by 39.

 

The Dow was down 11.66 to 12708.82.

 Transports were down 39.81 to 5240.94.

 

Utilities were up 1.22 to 449.76.

 

NASDAQ was down 2.53 to 2784.17.

 

S&P 500 was up 0.62 to 1316.00.

 

March crude was up 1.49 to 99.82.

 

Total Volume on the NYSE and associated exchanges was 3.7 bn.

 

There were 1760 advances and 1269 declines on the NYSE.

 

There were 148 new highs and 2 new lows.

The Big Money Breadth Index was down 2 at 987.

 

Bonds: Yield on the 10 year T-note was 2.06. Yield on the long T-bond was 3.14. Yield of the 91 day T-bill was 0.04%.

 

Dollar Index was down 0.50 at 79.71. Euro was up 0.95 at 130.20. Yen was down 0.04 at 129.94. Currency Prices as of 1 PM Pacific Time.

February gold was up 14.30 to 1678.30. February silver was up 0.59 to 32.27.

 

My Most Active Stocks Index was up 5 at 274.

 

GDX was up 0.83 at 53.01.

 

HUI was up 7.32 to 508.89.

 

CRB Commodity Index was up 3.67 at 313.58.

 

The VIX was up 0.39 to 18.67.

Permanent Portfolio Fund (PRPFX) was up 0.9 at 47.89 (previous day closing). YTD Return: 3.91%.