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Quote of the Day

Wednesday, January 04, 2012

January 4, 2012 -- It's as if the earth now has two moons instead of one and both growing in size like a cancerous tumor that may threaten the financial tides, emotions and economic life a we have known for the past half century. Welcome to 2012. "The financial markets and global economies are at great risk." Bill Gross, manager of the world's largest bond fund.



On January 3 we saw some improvement in the action of the market with my PTI up a halfhearted +4 and some slight improvement in the Lowry's figures. Yesterday the spread between the Buying power and Selling pressure indices contracted a bit from the 188 previous day to 180 on January 3.


The question is whether January 3 established a temporary Lowry's bottom for the market or not. My guess is that it did not.


Mr. Obama should be watching the action of the stock market carefully. If, in the next few months, the Dow breaks 10,000, I think it will be a sign that the recession is moving into its spring and summer months. If that's the case, I believe Obama's chance of being a two-term president will have dropped to zero or less. The president will not win if the unemployment is above 8% during the rest of the year 2012.


The Republican circus grows crazier by the day. Ron Paul, who actually believes in the US Constitution, has a devoted following among the younger set. Ron's eyebrows alone are a source of wonderment. Paul is running a surprising third among Republican stars; he's actually running better than I thought he would.


Ron's speeches are straight out of the US Constitution, and to many that must sound revolutionary. So much for the Constitution which never mentioned a national Bank or a Federal Reserve. Nor does it mention the need for US soldiers in both Germany and Japan. As the old song goes, "Hot dog, that's where our money goes."





My PTI was up 2 at 6341. The moving average at 6314, so my PTI is bullish by 27.


The Dow was up 21.04 to 12418.42.

 Transports were up 17.26 to 5082.97.


Utilities were down 2.70 to 453.02.


NASDAQ was down 0.36 to 2648.36.


S&P 500 was up 0.24 to 1277.30.


February crude was up 0.31 to 103.27.


Total Volume on the NYSE and associated exchanges was 3.5 bn.


There were 1511 advances and 1554 declines on the NYSE.


There were 80 new highs and 10 new lows.

The Big Money Breadth Index was up 2 at 979.


Bonds: Yield on the 10 year T-note was 1.99. Yield on the long T-bond was 3.04. Yield of the 91 day T-bill was 0.015%.


Dollar Index was up 0.47 at 80.08. Euro was down 1.19 at 129.44 Yen was don 0.13 at 130.43. Currency Prices as of 1 PM Pacific Time.

February gold was up 12.20 to 1612.7. February silver was down 0.47 to 29.09.


My Most Active Stocks Index was up 3 at 233.


GDX was down 0.06 at 53.74.


HUI was down 0.76 to 521.43.


CRB Commodity Index was up 0.43 at 313.80.


The VIX was down 0.74 to 22.23.

Permanent Portfolio Fund (PRPFX) was up 0.70 at 46.79 (previous day closing). YTD Return: 1.52%


Short Late Notes -- The market continues to build an extended top. The Dow floated up slightly. Gold woke up today, ending $12 higher.


The best to all my beloved subscribers,


Russell, the newly walking man. (Walking with a walker, that is.)




My oldest daughter, Daria, visited me yesterday and we talked a bit about food and dieting. Daria told me that she now avoids all grains and that she eats like primitive men, who ate nothing but meat and vegetables. And Daria believes, that that's the way we were meant to subsist. Daria's husband and son eat the same way -- meat and vegetables.


They both look healthy and in shape -- happily neither of them are overweight,. It seems to me that the meat and vegetable diet makes sense and I'm thinking of trying it myself.


Personally, I would be perfectly happy living on ice cream and bread. I guess I'm ready for meat and vegetables.