Stocks jes' keep risin' and risin', like Martha White Self-Risin' flour.
Dow rose for the seventh straight day, S&P500 rose for the eighth straight day and today made its sixth straight record close. Volatility index closed at 9.19, lowest point ever. In other words, at the point of historically unparalleled complacency.
Dow Industrials rose 11375 (0.5%) to 22,775.39, apparently on the way to 23,000. S&P500 climbed 14.33 (0.56%) to 2,552.07.
Just as a terminally ill patient seems recovering just before he expires, so topping markets appear strongest as they top. Here's a little meditation for y'all.
Gold's chart from 1 July 2011 through 15 September 2015 shows its double top, with the first top analogous (I suspect) to stocks today. Behold, http://schrts.co/fxnNDQ Ponder: The grotesquely overbought RSI indicator up top; the six days running gain leading into the top; the steep rate of ascent; the overbought MACD indicator, and finally, the speed and viciousness with which it broke, down 11% in 3 days before it rallied into that second top. At least the volume on this rise was increasing with the rise, unlike stocks today.
Six day winning streaks are six-sigma events -- rare & unlikely to persist.
Just for smiles, now compare the Dow Industrials chart, http://schrts.co/6i3CYC
Mark the sharp ascent and long upstreak; the overbought RSI & MACD, and Whoops! the Declining volume while the price riseth. Ooooo.
Now view the S&P500 chart at http://schrts.co/utjDur
There appeareth the overbought RSI, the long winning streak with sharp ascent, the overbought MACD and WHOOPS AGAIN! The flat volume not following price higher, indicating fewer & fewer buyers.
Me being a nat'ral born durn fool from Tennessee, I might be comparing kumquats & persimmons, but then again, maybe I ain't. Maybe I'm right. . . . That'd be a six-sigma event for shur!
US dollar index keeps rising, or rising by fits and starts, http://schrts.co/OkJ5UT Today it rose 50 basis points (0.54%) to 93.78, highest close yet for this move, but before it standeth yet resistance at 94 & higher. Interest rates are still rising. 10 year Treasury note yield today pierced its 200 DMA and has long ago broken out skyward.
One little hint that silver & gold may have nearly exhausted their downward momentum is that they are barely falling day by day and even disagreeing with each other. Yes, I know this sounds like, "Well, for a dead man he shur don't stink much." Sorry, I'm laboring hard.
Comex gold leapt, vaulted, jumped 1.9¢, almost two red pennies, to 1658.2¢. Gold lost $3.80 (0.3%) to $1,269.90.
'Pears to me that Gold is finding support as it draws nigh to $1,265 and becomes more & more reluctant to fall. Volume is also slowing. Looky here, http://schrts.co/aPwYUW Tain't yet precisely oversold on the RSI (i.e., below 30), but it's close enough to fog the windows.
Y'all hang on. This silver & gold suffering oughtn't last longer than next Friday.
Some sins are their own punishment, like shopping at WalMart. I know better, & today I got my chance to repent.
I had bought a pair of reading glasses for $26 at WalMart. I purposely bought the most expensive ones, Foster Grant, but three weeks didn't pass and the temple piece broke. I took 'em with me to WalMart customer "service."
Where one Beleaguered Woman was besieged by a line of four shoppers, none of 'em in a hurry. I ran off to grab some vinegar in the store, and when I came back there were still four shoppers in front of me. I toughed it out, got to the head of the line, explained my problem, & the Beleaguered Lady said, "Go get another pair and bring 'em back & you can swap them out."
I left my gallon of vinegar in her tender care and went searching for the reading glass display. Found it, but the most expensive pair cost only $16.98. I don't care, I thought, just grab a pair.
I returned to the customer "service" to find the beleaguered lady vanished. In her place was a man, who, despite all my compelling, cogent, well-marshaled and polite arguments, would NOT let me take the cheaper pair of readers to replace the broken pair. "Can't do it," he said, "Has to be exactly the same."
In a remarkable display of divine intervention, I did not unleash a string of cuss words but thanked him and walked out, taking my licks.
I got about three quarters of a mile away when I remembered I had left my gallon of vinegar at customer service. At that point I really did nearly cry.
Argentum et aurum comparanda sunt —
Silver and gold must be bought.
— Franklin Sanders, The Moneychanger