Monday, December 6, 2010

Stock markets muddle along while gold trades at record levels

Dow stayed close to break even all day, finishing down 19, advancers & decliners were essentially even & NAZ rose 3 helped by Apple's advance.  Bank stocks were a little lower.


Value203.53One-Year Chart for S&P 500 FINANCIALS INDEX (S5FINL:IND)
Change    -0.44   (-0.2%)

The MLP index was up a fraction in the 357s while the REIT index gained a fraction in the 220s. Junk bond funds were flat at their lofty levels yielding only 8-9%.  Treasuries were higher, but could have done better given the hints about the Federal Reserve buying even more Treasuries.  The yield on the 10 year Treasury bond fell almost 8 basis points to 2.94%, remaining near its 4 month high levels.

 Treasury yields:

U.S. 3-month
U.S. 2-year
U.S. 10-year

Alerian MLP Index   ---   YTD

Dow Jones REIT Index   ---   YTD

10-Year Treasury Yield Index   ---   YTD

Oil had a quiet day while gold soared to new records!!

CLF11.NYM...Crude Oil Jan 11...89.33 ......Up 0.11  (0.1%)

GCZ10.CMX...Gold Dec 10....1,425.30 ...Up 19.90  (1.4%)

***Gold Super Cycle***  

Gold was planted in positive territory this morning after Ben Bernanke, Chairman of the Federal Reserve (FED), said last night on TV that the FED would consider expanding its quantitative easing program.  He signaled that the central bank could expand its $600B Treasury purchase program to address the high unemployment rate. In addition, the ongoing uncertainty about the Euro-zone's ability to contain its debt crisis, attracted gold buyers pushing its price to a new record. However, the rise was kept in check with a stronger dollar.  The price of gold price closed at $1425 (difficult to imagine just a month or 2 ago).  Silver was also strong, pushing to a new 30 year high above $30 an ounce.

Gold Futures Rise to Record Closing Price on `Currency Debasement' Concern

Gold futures reach another record!!

Most Recent Quotes from

Apple (AAPL) was soaring at the same time.  The stock went over 320, setting a new intra day high above 322.   AAPL closed up 3+ to just over 320.  Buying came after more glowing remarks from its fans.  I'm not one.  It looks like significant competition for the iPhone & iPad will slow growth next year.  It's difficult to understand how the 2 prime safe haven investments are at record (near record for silver) levels while AAPL, a risky stock, also makes new records.

Apple   ---   YTD

Very little was decided today in the stock markets after increased worry levels about the FED swelling balance sheet & Euro zone debt problems.  But gold, silver & APL surged again to new highs.  The stock markets have held up in recent months despite that odd disconnect but I'not sure how long this can last.  The Dow is still within 100 of making a new 2010 high, very much needed to show the bulls are still in command.

Dow Jones Industrials   ---   YTD

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