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Quote of the Day

Wednesday, April 18, 2012

April 18, 2012 -- "To live under the American Constitution is the greatest political privilege that was ever accorded to the human race." Calvin Coolidge, 1872 to 1933.

 

Yesterday was a good day for the market, so let's see what was accomplished via the charts. Below we see the Dow after its 194 point surge. As you can see, the Dow is again above its 50-day moving average, but still far below its April peak of 13153. RSI is at its mid-point and neutral. And MACD is about to give a buy signal. Volume, however, was unimpressive on yesterday's rise. I trust a big upside day more if there is a surge of volume.

 

 

 

 

Turning to the companion Average, the Transports, we see a surge that started from the 50-day MA. The Transports are nearer to their high than is the case with the Dow, so if there is to be a non-confirmation at the highs, the Dow will probably be the one that lags.

 

 

 

 

Hey, how about those utilities below? They are above their 50 day MA. The Utilities are subject to rate changes, regulations and fuel costs, so if there is any danger lurking about, the Utilities are often the first Average to hint of danger. The Utilities are below two preceding peaks, but otherwise, they look OK. MACD is about to signal a buy. My two favorites are SO and ED with the addition of DUK. You buy them for income and defensive characteristics. Personally, I've always liked the utilities.

 

I well remember big "T" (AT&T) which paid their famous nine dollar dividend (never skipped a year) all during the Great Depression. The other Depression baby was Woolworth's, better known as the "five and ten."

 

  

 

Did you know that Canada dropped its penny completely? I expect the US to follow, since it costs more in copper to make the penny than the current US penny is worth in terms of face value.

 

TODAY'S MARKET ACTION:

 

My PTI was down 5 at 6388. The moving average at 6369, so my PTI is bullish by 19.

 

The Dow was down 82.79 to 13032.75.

 

Transports were down 6.52 to 5303.61.

 

Utilities were down 0.92 to 458.06.

 

NASDAQ was down 11.37 to 3031.45.

 

S&P 500 was down 5.64 to 1385.14

 

There were 1005 advances and 2020 declines on the NYSE.

 

There were 55 new highs and 43 new lows.

 

Total Volume on the NYSE and associated exchanges was 3.4 billion.

 

Bonds: Yield on the 10 year T-note was 1.981. Yield on the long T-bond was 3.126. Yield of the 91 day T-bill was 0.071%.

 

Dollar Index was up 0.11 at 79.58. Euro was down 0.13 at 131.43. Yen was down 0.66 at 123.17. Currency Prices as of 1 PM Pacific Time.

June gold was down 11.50 to 1639.60. May silver was down 0.18 to 31.48.

 

May light crude was down 1.53 to 102.67.

 

My Most Active Stocks Index was down 4 at 304.

 

The Big Money Breadth Index was unchanged at 1032.

 

CRB Commodity Index was down 2.89 at 299.15.

 

The VIX up 0.18 at 18.64.

 

Permanent Portfolio Fund (PRPFX) was up 0.29 to 48.34 (previous day closing). YTD Return: 4.88%.

 

Late Notes -- While the Dow has been floating around rather aimlessly, the Lowry's figures show some deterioration Buying Power is declining while Selling Pressure is rising. Today breadth was severely negative, with falling issues two to one over rising issues! New highs barely ahead of new lows. Very poor market internals. Dow closed on its low today, with the usual weakness at the close. (The big money tends to do its trading near the close.)

 

Meanwhile the market rocks back and forth like a drunken sailor, which makes it difficult to say anything decisive about where we're heading. If it's news you're looking for, all eyes are now fastened on Spain, which, I gather, is in very bad need of a bailout. And how long will Germany continue to bail out the sun-bathers in southern Europe?