Quote of the Day
Wednesday, January 25, 2012
January 25, 2012 -- I listened to the Obama speech, all of it, and it sounded like political "pie in the sky."
Probably the best description of the speech was written by Rick Santorum, actually before the speech was given:
"You are going to hear a bunch of flowery rhetoric and all this stuff about all the things he has done. But what has he done? He has grown the tax burden on the American public through Obamacare, through Dodd-Frank and through other bills. He has grown the size and scale of government to an unprecedented level. He has grown the deficit in this country to absolutely immoral lengths."
My own impression of the speech was tax, tax and tax everything that makes a profit --- taxes will, through time, get us out of this deficit disaster.
I'm not a Newt fan or a follower of Gingrich, but here's what the Newt says. "He has shifted from 'Yes we can' to 'Why we couldn't.'"
The stock market's reaction to President Obama's speech was for the Dow to open lower while the Transports were a bit higher. The dollar was higher while gold opened lower.
Friend Joe Granville shocked the Bloomberg TV watchers by predicting that the Dow was headed down 4,000 points before this sector of the bear market is over. Joe based his forecast on his on-balance-volume studies.
Below is an up-dated chart of Morgan Stanley's World Index (minus US stocks). Here we see a huge head-and-shoulders pattern. Currently we are on the right shoulder, with support at 1350. If this index breaks below 1350 I believe it will be a signal for international trouble, and Granville's prediction will be on its way.
TODAY'S MARKET ACTION:
My PTI was up 7 at 6367. The moving average at 6325, so my PTI is bullish by 42.
The Dow was up 83.10 to 12758.85.
Transports were up 76.46 to 5282.00.
Utilities were up 7.22 to 453.49.
NASDAQ was up 31.67 to 2818.31.
S&P 500 was up 11.41 to 1326.06.
March crude was up 0.89 to 99.84.
Total Volume on the NYSE and associated exchanges was 4.4 bn.
There were 2324 advances and 722 declines on the NYSE.
There were 147 new highs and 9 new lows.
The Big Money Breadth Index was up 9 at 988.
Bonds: Yield on the 10 year T-note was 2.00. Yield on the long T-bond was 3.15. Yield of the 91 day T-bill was 0.04%.
Dollar Index was down 0.40 at 79.46. Euro was up 0.62 at 130.87. Yen was down 0.11 at 128.60. Currency Prices as of 1 PM Pacific Time.
February gold was up 35.60 to 1700.10. February silver was up 1.14 to 32.12.
My Most Active Stocks Index was up 2 at 284.
GDX was up 3.41 at 55.23.
HUI was up 32.74 to 530.59.
CRB Commodity Index was up 1.68 at 316.37.
The VIX was down 0.60 to 18.31.
Permanent Portfolio Fund (PRPFX) was down 0.08 at 47.98 (previous day closing). YTD Return: 4.10%.
I said I would take it easy on Tuesday and Thursday's sites. Tomorrow is Thursday so the site will be shortened.