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Quote of the Day

Monday, January 30, 2012

January 30, 2012 -- I show a daily chart of the S&P below. What we see here is a very confused picture.

 

First we see a large head-and-shoulders top. The top breaks down and a large erratic rectangle is formed. The S&P breaks out of the rectangle and forms a symmetrical triangle. The triangle breaks out to the downside to about 1150 on the S&P. The triangle morphs into a rising wedge which takes the S&P to the 1320 area. Rising wedges are usually bearish, which is where we are now.

 

 

 

 

Gold, after its long climb, has corrected in the form of a descending wedge which is, a bullish formation. The breakout of a descending wedge is usually to the upside.

 

 

 

 

Voice recognition has to be the coming thing.Why do I say that? Because I claim that nothing I BUY is "user friendly." I buy a new TV set, and I can't work it. There are two remotes, one to turn the set off and on, another to search for stations. Impossible. I buy a simple razor, and the blades have to be inserted in a certain complicated way. I buy a put-together wood bed, and the instructions are a mile long with an accompanying package of screws and nails. I buy an electric mirror that lights, and I can't figure out the special wiring. I buy a microwave oven, and I find it's impossible to use unless my wife shows me how to set the four dials.

 

Voice recognition will be the savior. My dream of the future: I walk into my house and shout "Lights on." Then I say "Give me the news on TV," and the TV set turns on to exactly the right station. I shout "bath water on to 90 degrees," and I can hear the water running in the bathtub upstairs. I didn't have to figure anything out. I didn't have to call the plumber or the handyman. Everything works through my voice commands. It's a new and user friendly world. I can relax. I can breathe. I love it.

......................................

 

The cell phone has set off a world revolution. Suddenly, everybody knows what everybody else in at he world is doing and how they are living -- instantly. Dictators are horrified. Politicians are frozen with fear. Tyrants are packing their ill-gotten gains.

 

Let them see how others are living, and they will revolt. Let them see that their neighbors are free, and they'll want to be free. Let them find out that a protesting crowd will be forming at 7pm at the city park that night, and they will be out and marching with the crowd. The cell phone -- the great liberator of man. Science is finally freeing the human race -- Amazing.

 

TODAY'S MARKET ACTION:

 

My PTI was down 4 at 6361. The moving average at 6327, so my PTI is bullish by 34.

 

The Dow was down 6.74 to 12653.72.

 Transports were down 22.81 to 5321.97.

 

Utilities were down 1.41 to 446.56.

 

NASDAQ was down 4.61 to 2811.94.

 

S&P 500 was down 3.31 to 1313.02.

 

March crude was down 0.58 to 98.98.

 

Total Volume on the NYSE and associated exchanges was 3.5 bn.

 

There were 1113 advances and 1903 declines on the NYSE.

 

There were 157 new highs and 10 new lows.

Bonds: Yield on the 10 year T-note was 1.85. Yield on the long T-bond was 3.00 Yield of the 91 day T-bill was 0.051%.

 

Dollar Index was up 0.24 at 79.14. Euro was down 0.81 at 131.26. Yen was up 0.70 at 131.14. Currency Prices as of 1 PM Pacific Time.

February gold was down 1.20 to 1731.00. February silver was down 0.26 to 33.52.

 

My Most Active Stocks Index was down 3 at 274.

 

The Big Money Breadth Index was up 2 at 974.

 

GDX was down 0.68 at 56.46.

 

HUI was 5.91 to 542.79.

 

CRB Commodity Index was down 3.55 at 313.91.

 

The VIX was up 0.87 to 19.40.

Permanent Portfolio Fund (PRPFX) was up 0.11 at 48.78 (previous day closing). YTD Return: 5.84%.

 

Late Notes -- The pressure of world contraction and impossible debts is working its hardships on international stock markets. With the Dow closing down today we have seen 5 out of the last 7 sessions closing down. Some smart friends of mine are talking about the coming nuclear winter. I'm not arguing with them. I see many long hard years ahead. Gold will be the safe harbor.