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Quote of the Day

Tuesday, February 07, 2012

February 7, 2012 -- A case study. All I hear these days is Apple, Apple, and more Apple. Should we buy it? The daily chart below of Apple presents an interesting study. Note the recent large gap in the price structure accompanied by a spike in volume.

 

A gap is a space in the price pattern in which the highest price one day is separated by a space. When the lowest price of the following day appears, the gap is seen as a blank space separating two day's action.

 

As a rule with emotion, much of the time, when the enthusiasm dies down, prices will decline to fill the gap.

 

Apple is selling at 464 following the gap. If matters calm down, we may see Apple selling at 430 again as it comes down to close the gap. Note that RSI and MACD are both registering overbought.

 

 

 

 

 

 

 

TODAY'S MARKET ACTION:

 

My PTI was up 2 at 6372. The moving average at 6333, so my PTI is bullish by 39.

 

The Dow was up 33.07 to 12878.20.

 Transports were down 10.92 to 5323.33.

 

Utilities were up 2.11 to 452.06.

 

NASDAQ was up 2.09 to 2904.08.

 

S&P 500 was up 2.72 to 1347.05.

 

There were 1722 advances and 1304 declines on the NYSE.

 

There were 158 new highs and 1 new lows.

March crude was up 1.79 to 98.70.

 

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

 

Bonds: Yield on the 10 year T-note was 1.98. Yield on the long T-bond was 3.15 Yield of the 91 day T-bill was 0.086%.

 

Dollar Index was down 0.55 at 78.51. Euro was up 1.23 at 132.48. Yen was down 0.28 at 130.34. Currency Prices as of 1 PM Pacific Time.

April gold was up 23.50 to 1748.40. March silver was up 0.44 to 34.19.

 

My Most Active Stocks Index was down 1 at 300.

 

The Big Money Breadth Index was up 10 at 994.

 

GDX was down 0.30 at 55.88.

 

HUI was down 2.45 to 538.11.

 

CRB Commodity Index was up 0.80 at 315.00.

 

The VIX was down 0.11 to 17.65.

Permanent Portfolio Fund (PRPFX) was down 0.03 at 49.24 (previous day closing). YTD Return: 6.83%.

 

 

Late Notes -- Dow popped again on expectations of another QE3. Gold expects the same, and closed up over $20. So more QE3 is the thought and hope of today. But as we approach presidential election time the pressure is on the Fed to open the spigots wide. Print away!