Quote of the Day
Monday, April 30, 2012
April 30, 2012 -- "No power on earth is greater than a mind and soul awakened. Our Constitution begins 'We the people,' not 'Us the government'." Cal Thomas
I woke up this morning with the distinct feeling that a chapter of the world had come to an end. I felt that a new world is being heralded. What this means I don't know. The thought came out of my unconscious. It haunted me all Sunday. One chapter had come to an end, and a new one was starting. The new chapter may be starting in China.
China's Watergate -- A top Chinese official is accused of wiretapping the president of China. The man who was thought to be the future president of China has been caught red-handed in a crime: wire-tapping the president of China. Along with this crime up to $180 billion is missing, and it is thought that there is a connection. China is the only dictatorship without one man (the dictator) in charge. China is ruled by a collection of dictators, and therein lies a problem -- fierce and deadly competition.
Time to check out the world. Below is Morgan Stanley's World Stock Average, and as you can see it's been bouncing off its red 200 day moving average. The picture since March has been rough and erratic, suggesting that the World Index could go either way. But MACD suggests that the way it will be heading is due north.
What I learned over the weekend. China has a 9-man dictatorship; it is the only dictatorship that is not led by one man. When it was learned that one of the "dictators" had wiretapped the Chinese leader, all hell broke loose. Uneasy lie the heads of the various Chinese leaders. Yet strangely, the Chinese stock average is holding steady. On the news the FTSE broke below its 200-day MA, and then bounced back above it again.
In its efforts to gain a place in big American cities, Wal-Mart has been handing out bribes, supposedly unknown to top management. The revelations (which will cost WMT plenty) knocked the stock for a loop (below).
When too much of the public rides the same horse, the stock action can get semi-insane, as per Google at this time. The stock, though bullish, acts like a bucking bronco, trying to get the new arrivals off its back. Below is Google with declining tops and wild action thereafter.
Huge purses at some racetracks keep doped-up horses running. At one track 30 young horses have died as they fell apart doing more than they should be doing. They were filled with painkillers. Why I stopped watching bullfights and horse racing.
The really huge money is paying record prices for rare works of art -- and one-of-a-kind gems. And I mean the prices are in the multi-millions. It is thought that many of these buyers are Russian or Asian billionaires. The number of billionaires on earth is now counted in the thousands. Warren Buffett is no longer alone. But unlike most billionaires, Buffett voices his opinion on almost everything -- particularly on why the "rich" should pay more taxes. Of course, Warren owns a frozen custard chain so he could pay all his income in taxes and survive just living off soft ice cream. He could also spice it up; with candy, since he also owns "See's Candy."
TODAY'S MARKET ACTION:
My PTI was down at 6398. The moving average at 6373, so my PTI is bullish by 25.
The Dow was down 14.68 to 13213.63.
Transports were down 37.15 to 5230.24.
Utilities were up 1.07 to 470.53.
NASDAQ was down 22.84 to 3046.36.
S&P 500 was down 5.45 to 1397.91.
There were 1190 advances and 1856 declines on the NYSE.
There were 93 new highs and 14 new lows.
Total Volume on the NYSE and associated exchanges was 3.38 billion.
Bonds: Yield on the 10 year T-note was 1.924. Yield on the long T-bond was 3.120. Yield of the 91 day T-bill was 0.096%.
Dollar Index was up 0.07 at 78.78. Euro was down 0.20 at 132.42. Yen was up 0.91 at 125.36. Currency Prices as of 1 PM Pacific Time.
June gold was down 0.60 to 1664.20. July silver was down 0.39 to 31.01.
June light crude was down 0.06 to 104.87.
My Most Active Stocks Index was down 3 at 284.
The Big Money Breadth Index was up 2 at 1030.
GDX was down 0.41 at 46.39.
HUI was down 6.21 at 443.26.
CRB Commodity Index was up 0.44 at 305.95.
The VIX was up to 0.83 at 17.15.
Permanent Portfolio Fund (PRPFX) was up 0.11 to 48.70 (previous day closing). YTD Return: 5.66%.
Late Notes -- Volatility is slowing down to almost a stop as the Dow moodily gave up 14 points. June Gold doing little more, closing down a mere 60 cents. Is there still life on Wall Street?