DJIA

open  10,216.27

close 10,363.02 up 146.75

day high 10,407.82

day low 10,217.55

today's volume 179,044,031

3mo avg. daily volume 238,612,592

DJTA

open 4,167.27

close 4,247.00 up 82.91

day high 4,266.67

day low 4,167.27

today's volume 22,661,783

3mo avg.daily volume 24,213,018

A few interesting points I'd like to remember taken from Richard Russel today...

The Transport high for the preceding bull market was struck on October 5, 2007 at 4,997.17.  The Industrials high for the preceding bull market was set on October 9, 2007 at 14,164.53.  Will the 2007 High's be breached?  ... or even reached??

Looking at recent charts, I would argue no...  Although my 10,200 number has been breached today, speculation is rampant, earnings reports are ALWAYS massaged (just look at Alcoa), and volume is still way down on the daily.  

Current Industrials chart courtesy of StockCharts.com (my second favorite site on the web).

And Now For Something Completely Different  

A topic near and dear to my heart for the past 6 years, Precious Metals.  Oh to be the glorious gold, hated by so many, yet owned by the same.  An Interview with Otmar Issing on the McAlvany Weekly Commentary where we get to listen to one of the developers of the Euro 2 decades ago discuss how unnecessary an investment gold is today and immediately following acknowledge that the central banks of Europe will NEVER sell their gold positions... Gold is no longer a commodity.  Silver, sure, platinum, of course, palladium, rhodium etc... absolutely... but Gold is the financial titan of all time... and despite what we hope for, the ability to outperform God in creating a viable means of exchange, our humanity always gets the better of us.  Gold trades against other currencies, not commodities or equities, and will continue to do so.  Overlay a 3 year gold chart on a 3 year Industrials chart and see what you get...  The initial dead cat bounce, which did bring gold with it fell further on the Industrials.  Proof that traded markets can have adverse effect on tangibles, but ultimately the initial losses were taken and gold rose as the Industrials reached their ultimate low on the specific move.

Will Gold follow suit on this current impending primary bear trend?  Bet either way, but either way, years from now be greatful you own some.

Granted I am biased, as an employee of McAlvany's firm and a gold bug for almost a decade now, but show me a fundamental argument in the other direction that on a global scale and according to Dow Theory argues a primary bull trend over the next number of years.  I think you'll be hard-pressed and probably wrong.

Daily market noise is not conducive to trading.  I sometimes wonder how in the world CNBC, MSNBC and even Fox manage to fill all those hours a day rambling about nothingness.  At any given time you can turn on a TV and someone, somewhere is telling you we've hit bottom and are in recovery.  I remember that sentiment in November of 2006.  Regardless of our earnings season we have had a Black Cross in the moving averages as I noted last week and circled on a chart, can assume an indication of a major primary trend change.  The reason I plug gold is because now is the time to be on the sidelines.  For those of you brave enough, myself included, play your longer-term shorts.  But always remember that bravery includes somewhere between a modicum and multitude of idiocy.  This little volume with this much volatility equals uncertainty, and smart investments wait for opportunity... food for though...