From the standpoint of price action, the Transportation average on October 28 recorded a record close of 8759.30. The new record high by the Transports was not confirmed by the Industrial average. Thus from a Dow Theory standpoint, we have a new record high in the Transports, unconfirmed by the Dow.
It is clear that the Federal Reserve is not worried about deflation – if they were worried, they would not have shut down QE3.
The precious metals remain in trading ranges and in doing so they have served me well.
To add a little spice to our mixture, I have added a fairly large (for me) position in the insurance company WR Berkley as seen in the chart below. I’m thinking that WRB could be another Berkshire Hathaway over time. If any subscribers decide to add WRB to their portfolios, remember to treat this stock with a large portion of patience. ... Log in or subscribe to continue reading.