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Quote of the Day

Tuesday, January 24, 2012

January 24, 2012 -- The first crack in the great and incredibly complex top that has been in formation for months is beginning to appear. Today for the second day the Dow gave ground.


Based on my studies of market internals, it appears that the "internal guts" the NYSE have topped out, and when the internals have reached their peak of momentum and turn down, it's only a matter of time before the Dow follows. When the soldiers retreat en masse, the generals are forced to follow. I have no idea how long this top will continue to extend, but I'm guessing that over the next few months we'll see additional unmistakable signs of deterioration.


For instance, over the last two weeks, there have been four "distribution days" in the S&P 500 and one for the NYSE Composite. Distribution days appear when the market declines on heavier volume than was the case on the preceding day.


As for gold, there appears to be a temporary top at the Feb. gold 1666 level. Someone or some group seems to be feeding gold out every time Feb. gold hits 1666. I've watched gold for decades, and I've never seen anything like it. Gold appears to be "nailed down" at 1666.




How do you stop Iran from producing nuclear weapons? Do you bomb their installations? Do you cut off their sources of food and supplies? Wait, there's another way supposedly being carried out by Israel's Mossad and already OK'd by the US. You kill their nuclear scientists. Five of Iran's top scientists have been assassinated already, and the word is that it's life-threatening to work on nuclear weapons for Iran.





My PTI was down 2 at 6360. The moving average at 6324, so my PTI is bullish by 36.


The Dow was down 33.07 to 12675.75.

 Transports were down 35.40 to 5205.54.


Utilities were down 3.49 to 446.27.


NASDAQ was up 2.47 to 2786.64.


S&P 500 was down 1.37 to 1314.63.


March crude was down 0.43 to 99.15.


Total Volume on the NYSE and associated exchanges was 3.6 bn.


There were 1632 advances and 1379 declines on the NYSE.


There were 85 new highs and 10 new lows.

The Big Money Breadth Index was down 7 at 980.


Bonds: Yield on the 10 year T-note was 2.06. Yield on the long T-bond was 3.14. Yield of the 91 day T-bill was 0.04%.


Dollar Index was up 0.07 at 79.86. Euro was up 0.05 at 130.25. Yen was down 1.23 at 128.71. Currency Prices as of 1 PM Pacific Time.

February gold was down 13.80 to 1664.50. February silver was down 0.29 to 31.97.


My Most Active Stocks Index was up 2 at 276.


GDX was down 1.19 at 51.82.


HUI was down 11.03 to 197.85.


CRB Commodity Index was up 1.11 at 314.69.


The VIX was up 0.39 to 18.67.

Permanent Portfolio Fund (PRPFX) was up 0.17 at 48.06 (previous day closing). YTD Return: 4.27%.