Stocks opened lower yesterday but then climbed until just before
the close when profit taking took a toll. Financial stocks
were hit hard when the Fed refused to approve a boost in the
dividend of
Bank of America
(NYSE:
BAC
). Also, new home sales fell 17% for February, which is
another record low.
Daily Stock Market News
Dow:
+67 at 12,086
S&P 500:
+4 at 1,298
Nasdaq:
+14 at 2,698
Volume & Breadth
NYSE: 877 million, decliners ahead 1.3-to-1
Nasdaq: 468 million, advancers ahead 1.1-to-1
Futures & Related ETFs
April Crude Oil:
+$0.78 at $105.75;
Energy Select Sector SPDR
(NYSE:
XLE
) +$0.20 at $77.71
April Gold:
+$10.40, settled at $1,438.00;
PHLX Gold/Silver Sector Index
(NASDAQ:
XAU
) +$7.71 at $217.46
What The Markets Are Saying
Yesterday's bounce took the S&P 500 and Nasdaq back to Monday's
high but still below their 20- and 50-day moving averages.
The Dow, however, did manage to close those barriers, but the bulls
should take no delight in this since the volume was, again, very
low and advancers barely beat out decliners across the board.
After slicing through support so easily from Friday, March 11,
to Wednesday, March 16, it is not unusual for such rallies to
easily bounce through the area of the prior decline since the
decline leaves little resistance. Yesterday, however, the Dow
pushed into an area of significant resistance late in the day but
finding it difficult to make further progress it gave up 30 points
in the last hour of the session.
The
Russell 3000
(
RUA
) that was mentioned yesterday also failed to close above its major
barriers. And the other broad-based index on which I rely,
the NYSE Composite, also failed to make it through its 20-and
50-day moving averages.
Turning to inflation: Last week's Producer Price Index
(PPI) showed that inflation at the producer level jumped 1.6% in
February. "This is the largest monthly increase since 1974
when the runaway inflation spiral of the 1970's was underway."
according to Sy Harding of "Street Smart Report." That period
was not only characterized by high inflation but also low
productivity and thus the term "stagflation" was born
Since the release of the PPI, commodities took off again with
gold and silver leading the way. The
iShares Silver Trust
(NYSE:
SLV
) closed at a new high of $36.47 yesterday. Since January 1
SLV is up almost 20% and will probably run for another 20% before
the end of the summer.
Inflation is now with us. Last year I warned repeatedly
that inflating the currency had to result in an overall
inflationary spiral of prices since no country has ever printed so
much currency and avoided this most obvious negative impact.
And yet anyone who dared to warn of the dangers of issuing
cheap dollars was greeted with disbelief and even disparagement by
politicians, economists, and even our Secretary of the
Treasury. People who should know better but lacked the
backbone to confront this most serious of all economic issues have
weakened our currency, our economic security, and our standing in
the world economic community.
Well, that's my "rant of the week." Now go buy some gold
stocks.
My trade of the day today is
Barrick Gold
(NYSE: ABX). Read my recommendation of
Barrick Gold stock
here.
If you have questions or comments for Sam Collins, please
e-mail him at
samailc@cox.net
.
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March 24, 2011
Daily Stock Market News
Stocks opened lower yesterday but then climbed until just before
the close when profit taking took a toll. Financial stocks
were hit hard when the Fed refused to approve a boost in the
dividend of Bank of America (BAC). New home sales fell 17%
for February, which is another record low.
DJIA +67 at 12,086
S&P 500 +4 at 1,298
Nasdaq +14 at 2,698
Volume & Breadth
NYSE 877 million, decliners ahead 1.3-to-1
Nasdaq 468 million, advancers ahead 1.1-to-1
Futures & Related ETFs
April Crude Oil +$0.78 at $105.75; Amex Energy SPDR (XLE)
+$0.20 at $77.71
April Gold +$10.40, settled at $1,438.00; PHLX Gold/Silver
Index (XAU) +$7.71 at $217.46
What The Markets Are Saying
Yesterday's bounce took the S&P 500 and Nasdaq back to
Monday's high but still below their 20- and 50-day moving
averages. The Dow, however, did manage to close those
barriers, but the bulls should take no delight in this since the
volume was, again, very low and advancers barely beat out decliners
across the board.
After slicing through support so easily from Friday, March 11,
to Wednesday, March 16, it is not unusual for such rallies to
easily bounce through the area of the prior decline since the
decline leaves little resistance. Yesterday, however, the Dow
pushed into an area of significant resistance late in the day but
finding it difficult to make further progress it gave up 30 points
in the last hour of the session.
The Russell 3000 (RUA) that was mentioned yesterday also failed
to close above its major barriers. And the other broad-based
index on which I rely, the NYSE Composite, also failed to make it
through its 20-and 50-day moving averages.
Turning to inflation: Last week's Producer Price Index
(PPI) showed that inflation at the producer level jumped 1.6% in
February. "This is the largest monthly increase since 1974
when the runaway inflation spiral of the 1970's was underway."
according to Sy Harding of "Street Smart Report." That period
was not only characterized by high inflation but also low
productivity and thus the term "stagflation" was born.
Since the release of the PPI, commodities took off again with
gold and silver leading the way. The iShares Silver Trust
(SLV) closed at a new high of $36.47 yesterday. Since January
1 SLV is up almost 20% and will probably run for another 20% before
the end of the summer.
Inflation is now with us. Last year I warned repeatedly
that inflating the currency had to result in an overall
inflationary spiral of prices since no country has ever printed so
much currency and avoided this most obvious negative impact.
And yet anyone who dared to warn of the dangers of issuing
cheap dollars was greeted with disbelief and even disparagement by
politicians, economists, and even our Secretary of the
Treasury. People who should know better but lacked the
backbone to confront this most serious of all economic issues have
weakened our currency, our economic security, and our standing in
the world economic community.
Well, that's my "rant of the week." Now go buy some gold
stocks.
Trade of the Day
Barrick Gold Corporation (ABX) -
This acquirer, explorer, and developer of gold properties and
copper, silver, and zinc, pulled back from a high of almost $56 in
early December '10 and bottomed at just under the 200-day moving
average at $46 in late January on a major support line. ABX
jumped with a "break-away-gap" that will not only challenge the
high at $55.72 but will likely break it in a run to the
mid-$60s. The stock recently held at its bullish support line
and 50-day moving average and buying volume is increasing.
S&P has rated ABX a "4-Star Buy" with a 12-month target
of $70.