Quote of the Day
Monday, March 26, 2012
THE MOST RECENT DOW THEORY LETTER HAS JUST BEEN POSTED TO OUR SITE
March 26, 2012 -- No modern president has ever won a second term when the unemployment figure was 7.3% or more. At present, it is over 8%.
Zoom! We have now moved into the heat of the presidential battle. To me, it looks like a struggle between Mitt Romney and Barack Obama. I sense that voters are not enamored with either of these men. Obama surprised me by at first acting disinterested in the job, but as time went on Obama showed that he loved the power, and besides, he discovered that when it came to tough decisions, he could turn them over to commissions and let himself off the hook. More recently, it seems that Obama actually likes to shake hands and hug -- politically he's come alive. What is there about the presidency that wakes men up and brings them to life? Power! Every politician loves power, and the more power the better.
Meanwhile, the stock market has come to life with a bang! I'm bringing my P&F chart of my PTI up to date. Since I last showed this chart I've added two boxes to the extreme peak, and we see that the ascending column has hit another high. For a danger or sell signal, the boxes would have to drop below the last three-box reversal, where the arrow points.
TODAY'S MARKET ACTION:
My PTI was up 6 at 6402. The moving average at 6361, so my PTI is bullish by 41.
The Dow was up 160.90 to 13241.63.
Transports were up 71.20 to 5289.02.
Utilities were up 3.34 to 456.10.
NASDAQ was up 54.65 to 3122.57.
S&P 500 was up 19.40 to 1416.51.
There were 2325 advances and 743 declines on the NYSE.
There were 183 new highs and 14 new lows.
May light crude was up 0.16 to 107.03.
Total Volume on the NYSE and associated exchanges was 3.4 billion.
Bonds: Yield on the 10 year T-note was 2.252. Yield on the long T-bond was 3.343. Yield of the 91 day T-bill was 0.081%.
Dollar Index was down 0.46 at 78.88. Euro was up 0.79 at 133.49 Yen was down 0.46 at 120.86. Currency Prices as of 1 PM Pacific Time.
April gold was up 23.20 to 1685.60. May silver was up 0.47 to 32.27.
GDX was up 0.87 at 50.63.
HUI was up 8.66 to 482.08.
CRB Commodity Index was up 0.54 at 315.01.
The VIX down 0.56 to 14.26.
Permanent Portfolio Fund (PRPFX) was up 0.34 to 48.62 (previous day closing). YTD Return: 5.49%.
Late Notes -- The market action has suddenly turned strong. Advancing stocks are three times the number of laggers. Advancing volume today is over five times declining volume. There are 183 new highs to only 18 new lows. Stay with your DIAs, for a higher market.
April gold is up 23 dollars and looking higher. It seems to me that the markets are finally adjusting to higher inflation and better business. Remember, the market tends to discount the situation six to nine months ahead of the economy and the news. If this keeps up, Obama will be with us for another four years.
Note that I am not wasting a lot of space writing about the current state of business. We want to know how business will look months from now. And that's why I write about the market. And never forget, the market can change its mind in a matter of a few weeks or so, which is why I write a daily site on the market!
Flash -- Lowry's Selling Pressure index is now only 96 points above their Buying Power index. A positive crossing with Buying Power above Selling Pressure would be extremely bullish for the market.