Sure enough, no sooner do I call a near-term top and tell the world to shun stocks and buy gold and silver, than the market participants decide to push the indices close to 2010 highs.
Notice I said close, not at 2010 highs. The major indices are anywhere from 4 to 8 per cent below the levels reached in late April, with the Dow being the closest of the three. What is propelling stocks higher is nothing in particular, but gobs of free money, courtesy of the Fed, in aggregate.
This is actually the way it's going to play out, with stocks advancing on nothing but momentum or speculation, while gold and silver may take a bit of a breather, only to resume rising as money evaporates along with all investments measured in it, except, or course, the precious metals, an asset class unto themselves, doubling as a safety-net, de facto currency.
Dow 10,860.26, +197.84 (1.86%)
NASDAQ 2,381.22, +54.14 (2.33%)
S&P 500 1,148.67, +23.84 (2.12%)
NYSE Composite 7,301.04, +159.53 (2.23%)
Advancing issues were back in their groove, dancing all over decliners, 4645-1065. New highs totaled 420, to just 29 fresh lows. Volume was subdued, once again.
NASDAQ Volume 2,014,145,250
NYSE Volume 4,326,041,500
Gold finished nearly unchanged at $1297.70 per ounce; silver was shining, at $21.42. Crude oil finished $1.31 ahead, at $76.49.
Friday, September 24, 2010
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