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Quote of the Day

Thursday, May 24, 2012

May 24, 2012 -- Is there any purpose of my being here on earth? This is a question that I've long asked myself. I think the answer lies in metaphysics. Yes, I do believe in reincarnation. I've been here before, I'm certain of it. And I'm here with a few of the same people I was here with before. But again, the question -- why am here? I know that I'm here to learn. I'm here again to overcome problems that have held up my progress in previous lives.

 

I think, among other things, I'm here to teach. To teach what? To teach my subscribers about handling money and above all -- to teach them about surviving.

 

At this point, I believe we are at the edge of forces that are world-shaking. The United States is the beacon of human freedom. We are an example to the world of what it means to be free, to think the way we want to think, and to say what we want to say.

 

For this reason, America is unique. In no other nation are men and women as free to express themselves the way they can in the US.

 

The point of all this is that the United States has come to the edge of the cliff. The US must survive -- or the beacon of freedom will be lost and ten centuries of learning and freedom will go down the drain of history. I've been saying that complacency is in the driver's seat in the US -- even as we creep towards the edge of the cliff. But this is not the time for self-satisfaction and complacency.

 

For want of something better, it's time to get into cash. It's time to realize that what's happening is deadly serious. Ultimately, gold will be the last man standing. But everything in investing requires timing. Gold's time has not yet come. But gold's time lies somewhere in the future. I don't mean "paper gold" or some slip of paper that says you own a certain quantity of gold. I mean real bullion gold.

 

Perhaps the price of gold is declining now, so that gold will be in a position where it will represent a great buy. Every subscriber should own a certain number of bullion gold coins. And every subscriber should get as far out of debt as possible.

 

That's the way I see it, that's the way I would like it. I'm writing from intuition. I really am not certain why I'm writing this way. I'm writing this way because I feel impelled to.

 

The coming great bear market should last at least another two years -- maybe more. But the intensity of it will be over the next two years.

 

Note -- I didn't care for yesterday's market close. The Dow crept up for the final hour, and I thought it was significant that with all the steam in the market boiler, in the end the Dow still closed down. The Dow had been down 13 out of 15 sessions in a long series of declines. I took this incredible series as an early warning for me and my subscribers (no one else seems to be particularly interested).

 

Euros are leaving Greece and they are leaving Spain and probably Portugal (and Italy too?). It's a new world being formed, and you and I will be part of it. And we will be tested.

 

TODAY'S MARKET ACTION:

 

My PTI was up 4 at 6365. The moving average is 6374, so my PTI is bearish by 9.

 

The Dow was up 33.60 to 12529.75.

 

Transports were up 41.15 to 5108.40.

 

Utilities were up 1.61 to 466.91.

 

NASDAQ was down 10.74 to 2839.38.

 

S&P 500 was up 1.82 to 1320.68.

 

There were 1760 advances and 1276 declines on the NYSE.

 

There were 41 new highs and 45 new lows.

 

Total Volume on the NYSE and associated exchanges was 3.74 billion.

 

Bonds: Yield on the 10 year T-note was 1.769. Yield on the long T-bond was 2.859. Yield of the 91 day T-bill was 0.096.

 

Dollar Index was up 0.177 at 82.27. Euro was down 0.48 at 125.26. Yen was down 0.18 at 125.71. Currency Prices as of 1 PM Pacific Time.

 

June gold was up 9.10 to 1557.50. July silver was up 0.638 to 28.15.

 

July light crude was up 0.76 to 90.66.

 

My Most Active Stocks Index was up 2 at 212.

 

The Big Money Breadth Index was up 2 at 983.

 

GDX was up 0.19 at 44.63.

 

HUI was up 3.064 at 424.84.

 

CRB Commodity Index was up 0.48 at 281.92.

 

The VIX was down 0.67 at 21.66.

 

Permanent Portfolio Fund (PRPFX) was down 0.20 at 46.19 (previous day closing). YTD Return: 0.22%

 

Late Notes -- As I write this minutes before the close, the Dow is actually up 32 points. This means that the Dow was down 14 out of the last 17 sessions, something I have never seen before. Is it a sign? Is it a warning? Is it a freak incident? I wonder.

 

As for (tomorrow's) Friday's close, only a fool would bet that the Dow will close down. And only a fool would bet that he could buy Facebook at the opening and sell it for a profit. The Facebook IPO had to be the mother of all hype.

 

At the close Apple and Google down 5 each. FB 33.03.