Click Here to Subscribe Now! Try a 3-month trial for only $68

Quote of the Day

Wednesday, February 01, 2012

February 1, 2012 -- "We are witnessing the death of abundance for a long time." PIMCO, Bill Gross

 

The great GOP debate continues with Gingrich finally dropping behind the Mitt.

 

Meanwhile, the stock market is caught in the puzzle of will Europe emerge whole from its current troubles, or will the Eurozone fall apart like a deflating balloon? That plus the following question: Does the US face another four years of a socialist president who seeks to solve all problems by either taxing "the rich" or throwing trillions of man-made dollars at the screw-up in question?

 

The poor man in the street is facing questions and doubts. Will he be at the same job a year from now? And if he gets a pink slip will he be able to find another job?

 

If the year 2012 has a title, the title should be "uncertainty."

 

Nobody's asking, "What happens if there's a recession in the next year?" Or "What if unemployment is 9% or more at presidential election time?" If either of the above occur, the GOP could run a donkey, and it would be our next president. Obama must have a good economy to win.

 

What about gold? Remember gold? Don't worry about the yellow metal. Over the last week gold has broken out above a bearish trendline and the direction is now UP. The next task -- for gold to trade in the 1800s.

 

 

Below, silver in a down-sloping rectangle. A hugely important upside breakout would arrive if silver could hit 37.

 

 

 

 

TODAY'S MARKET ACTION:

 

My PTI was up 6 at 6369. The moving average at 6329, so my PTI is bullish by 40.

 

The Dow was up 83.55 to 12716.46.

 Transports were up 23.96 to 5343.10.

 

Utilities were up 2.07 to 450.91.

 

NASDAQ was up 34.43 to 2848.27.

 

S&P 500 was up 11.67 to 1324.08.

 

March crude was down 1.04 to 97.44.

 

Total Volume on the NYSE and associated exchanges was 4.4 bn.

 

There were 2525 advances and 535 declines on the NYSE.

 

There were 304 new highs and 10 new lows.

Bonds: Yield on the 10 year T-note was 1.83. Yield on the long T-bond was 2.99 Yield of the 91 day T-bill was 0.066%.

 

Dollar Index was down 0.35 at 78.93. Euro was up 0.72 at 131.58. Yen was down 0.08 at 131.26. Currency Prices as of 1 PM Pacific Time.

February gold was up 9.10 to 1749.50. February silver was up 0.54 to 33.80.

 

My Most Active Stocks Index was up 13 at 288.

 

The Big Money Breadth Index was up 4 at 976.

 

GDX was up 0.10 at 56.56.

 

HUI was up 0.29 to 541.52.

 

CRB Commodity Index was down 0.78 at 311.531.

 

The VIX was down 0.89 to 18.55.

Permanent Portfolio Fund (PRPFX) was up 0.03 at 48.69 (previous day closing). YTD Return: 5.64%.

 

Late Notes-- Finally a good day although the Dow gave up a healthy chunk at the close. Buying was not impressive but we'll take what we can get. It will be interesting to see if there is a followup on the upside tomorrow. At least a part correction of the four preceeding down days. If the market is down on higher volme tomorrow-- not good. As for gold it held steady today and mercifully did not give up and inch during the day. Silver continues to look cheap in relation to gold.