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Quote of the Day

Tuesday, February 14, 2012

February 14, 2012-- Remember Tuesdays and Thursdays are my days of rest. The crash of 2008 was the preliminary move in the great deflationary bear market. This bear market is fated to correct the entire inflationary rise since WWII.

 

The Bernanke Fed chose to halt the bear market in 2009 with the help of a high speed printing press. Thus we have seen a rise in the markets a result of an avalanche of man made money plus zero interest rates. The primary trend of the market and the economy is more powerful than any man or group of men. The market is now building a top which in due time will give way to the rest of the bear market.

 

The little ripples in the Dow, up 80 points one day and down 60 the next should be viewed as meaningless. A great bear market lies ahead. The bear market will start when the current top is completed, which brings up the old expression, "The market can stay irrational longer than we can stay solvent." How long this top will continue remains a mystery. My instinct and intuition tells me that the great top will break down before the year 2012 is out. The survivors will be tangible goods-- gold, jewelry, and great art. Add to that drinkable water, and arable land.

 

TODAY'S MARKET ACTION:

 

My PTI was up 2 at 6377. The moving average at 6337, so my PTI is bullish by 40.

 

The Dow was up 4.24 to 12878.28.

 Transports were down 38.07 to 5284.12.

 

Utilities were up 0.91 to 450.32.

 

NASDAQ was up 0.44 to 2931.83.

 

S&P 500 was up 1.27 to 1350.50.

 

There were 1109 advances and 1930 declines on the NYSE.

 

There were 92 new highs and 1 new lows.

March light crude was down 0.17 to 100.74.

 

Total Volume on the NYSE and associated exchanges was 3.8 bn.

 

Bonds: Yield on the 10 year T-note was 1.94. Yield on the long T-bond was 3.08 Yield of the 91 day T-bill was 0.11%.

 

Dollar Index was up 0.50 at 78.45. Euro was down 1.11 at 130.94. Yen was down 1.40 at 127.46. Currency Prices as of 1 PM Pacific Time.

April gold was down 7.20 to 1717.70. March silver was down 0.37 to 33.34.

 

My Most Active Stocks Index was down 7 at 292.

 

The Big Money Breadth Index was up 2 at 996.

 

GDX was down 0.53 at 53.77.

 

HUI was down 6.22 to 515.23.

 

CRB Commodity Index was down 0.11 at 313.95.

 

The VIX was up 0.50 to 19.54.

Permanent Portfolio Fund (PRPFX) was up 0.14 at 49.11 (previous day closing). YTD Return: 6.55%.

 

Late Notes-- Over half of all stocks listed on the NYSE are down for the year this despite the valiant rallying attempts by the Dow. The soldiers are retreating and it will not be long before the generals follow.