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Quote of the Day

Tuesday, January 10, 2012

January 10, 2012 -- On and on it goes, the market building what I think is one of the greatest tops in history. The Dow continues a bit higher each day -- up enough to keep investors bullish and hoping. Meanwhile, the negative spread between Lowry's Buying Power and Selling Pressure indices is now 196. Selling Pressure is slowly building while Buying Power is falling away at a rapid pace.


Gold continues to hold above 1600, thereby frustrating the gold shorts while encouraging the gold bulls. Of course the trouble in and around Iran is bullish for gold. Gold always rises in time of war or in time of possible war. Wars are extremely expensive to wage, and they are usually inflationary as shortages appear in all areas. Also, gold is extremely important if one wants to cross a border and land in a safer spot.


When dictators take over a country they confiscate gold, guns, and the media. Citizens use guns to defend themselves, they use the media to tell them what is going on, and they use gold to cross the border as they escape.


I show a chart of GLD below. Note the little head and shoulders pattern at the end of this chart. This may mean that gold has carved out a bottom. Note that GLD closed above its 200-day MA.






My PTI was up 6 at 6349. The moving average at 6316, so my PTI is bullish by 33.


The Dow was up 69.78 to 12462.47.

 Transports were up 72.64 to 5172.65.


Utilities were up 0.62 to 453.20.


NASDAQ was up 25.94 to 2702.50.


S&P 500 was up 11.38 to 1292.08.


February crude was up 0.87 to 102.18.


Total Volume on the NYSE and associated exchanges was 4.2 bn.


There were 2333 advances and 705 declines on the NYSE.


There were 150 new highs and 13 new lows.

The Big Money Breadth Index was up 2 at 971.


Bonds: Yield on the 10 year T-note was 1.97. Yield on the long T-bond was 3.03. Yield of the 91 day T-bill was 0.015%.


Dollar Index was down 0.15 at 80.89. Euro was up 0.34 at 127.95. Yen was up 0.11 at 130.31. Currency Prices as of 1 PM Pacific Time.

February gold was up 23.40 to 1631.50. February silver was up 1.03 to 29.81.


My Most Active Stocks Index was up 6 at 242.


GDX was up 0.82 at 54.47.


HUI was up 7.99 to 527.75.


CRB Commodity Index was up 3.92 at 315.44.


The VIX was down 0.39 to 20.68.

Permanent Portfolio Fund (PRPFX) was unchanged at 46.64 (previous day closing). YTD Return: 1.19%.



Late Notes -- Nothing new about today's session. This enormous top just keeps building.