Richard Russell, the famous writer of the Dow Theory Letters, has a chilling line in today's note:
Do your friends a favor. Tell them to "batten down the hatches" because there's a HARD RAIN coming. Tell them to get out of debt and sell anything they can sell (and don't need) in order to get liquid. Tell them that Richard Russell says that by the end of this year they won't recognize the country. They'll retort, "How the dickens does Russell know -- who told him?" Tell them the stock market told him.
That's pretty intense!
Update: By popular demand, here's more on what he sees in the market. The gist is that the markets recent gyrations are telling him that the economy is in trouble:
And I ask myself, "Am I seeing things? The April 26 high for the Dow
was 11205.03. The Dow is selling as write at 10557 down 648 points
from its April high. If business is even better than expected, then
why is the Dow down over 600 points? And why, if there were 674 new
highs on the NYSE on April 26, were there only 20 new highs on Friday,
May 14? And if my PTI was 6133 on April 26, why is it down 17 points
since its April high?
The fact is that I've been seeing deterioration in the stock market
ever since early-April, and this in the face of improving business
news. The D-J Industrial Average is composed of 30 internationally
known top-quality blue-chip stocks. These are 30 of "America's biggest
companies." If Barron's is so bullish on the future of America's
biggest companies, then why isn't the Dow advancing to new highs?
Clearly something is wrong. But what could it be? Much as I love
Barron's, I trust the stock market more. If I read the stock market
correctly, it's telling me that there is a surprise ahead. And that
surprise will be a reversal to the downside for the economy, plus a
collection of other troubles ahead.
More Here..was 11205.03. The Dow is selling as write at 10557 down 648 points
from its April high. If business is even better than expected, then
why is the Dow down over 600 points? And why, if there were 674 new
highs on the NYSE on April 26, were there only 20 new highs on Friday,
May 14? And if my PTI was 6133 on April 26, why is it down 17 points
since its April high?
The fact is that I've been seeing deterioration in the stock market
ever since early-April, and this in the face of improving business
news. The D-J Industrial Average is composed of 30 internationally
known top-quality blue-chip stocks. These are 30 of "America's biggest
companies." If Barron's is so bullish on the future of America's
biggest companies, then why isn't the Dow advancing to new highs?
Clearly something is wrong. But what could it be? Much as I love
Barron's, I trust the stock market more. If I read the stock market
correctly, it's telling me that there is a surprise ahead. And that
surprise will be a reversal to the downside for the economy, plus a
collection of other troubles ahead.
All we need is a few more guys like Richard Russell to order investors to sell sell sell, and if they listen, stocks will nosedive.
ReplyDeleteThat means PMs have to go up because bonds suck.
Okay. Go for it.
Is he predicting deflation? If we are going have have monster inflation, which looks unlikely, wouldn't we want to lever up?
ReplyDeleteIs Prechter the deflation guy and Dent is inflation or the other way around?
If the Stock Market is so heavily manipulated then how does Richard Russell know his reading of it is correct?
ReplyDeleteI am not saying he may not be right just that the Stock Market may not be the best indicator. We see massive unemployment and other signs that might be more important.
But his advice may not be bad.
"All we need is a few more guys like Richard Russell to order investors to sell sell sell, and if they listen, stocks will nosedive."
ReplyDeleteIn the good old days, this might have been true, but the small/ medium retail investor is totally irrelevant in today's environment.
The big financial firms totally manipulate the market, often in defiance of common sense or reason. All the well-thought reasoned analysis in the world is meaningless when you have computer programs trading tens of thousands of shares back and forth, all to gain a fraction of a penny profit on each.
The proof can be readily seen, as EA reported earlier:
http://thecomingdepression.blogspot.com/2010/05/manipulation-goldman-sachs-made-100.html
Armstrong says stocks/gold/hard assets are going up as capital flies away from fiat currency...who to believe?
ReplyDeletetalked to my neibour today
ReplyDelete2 houses empty on my street for 2 years
he lived here fror 40 years
retired told me going to levrage his house all the way up default live there for 2 years and not even pay taxes
a woeker decent person so fed up doing things right
saves 20 thousand on taxes
saves 50 thosand on loan
saves 20 thousand on realestate broker
gets 90 thousand and lives 2 years for free
aqlso saves all earning in that time
house gurantee sale in default
im so glad i bought gold
when i see decent people looking at default
after working there whole lives as a way to make money
i buy more gold
he is one of many
obama there are no jobs you lied
thanks for the gulf you lived up to bushs katrina
also thanks for extending uenployement past 99 weeeks you really care not for the workers
Elect an Kenyan, get a Kenyan economy.
ReplyDeleteWhere is the Birth Certificate?
9:10 - I make spelling mistakes, but you went over the top. You thoughts are intelligent. I know I am a terrible speller, but you just gave me a run for the money on spelling.
ReplyDeletesorry didnt know this was a spelling bee
ReplyDeleteall the smart ones are in goverment
buy gold
i quit school at 16
my free lunch ended years ago
i wouldnt give spit for where our goverment is leading us
as for being intelligent
sometimes i wish i could be delusional
go lucky happy face kid i use to be
but after seeing what has been done in america the last 20 years
i would have to add dum arrogant to that list
sorry for the misspelling
I need to donate to this site for many reasons.The biggest is for an investment in SPELL CHECK.
ReplyDelete10:09,
ReplyDeleteIt's the thoughts that count, not just spelling.
Often times, people miss a letter or word to convey their thoughts. So what? As long as we get the point.
Now go buy some PMs and pipe down.
It seems most of financial experts I read recommend getting out of the stock market. Of course I do not watch TV, so I suppose the Fox financial babes are saying the economy is improving...buy, buy, buy.....
ReplyDeleteGold & Silver is my game, can't loose for sure. My sheeple family and friends stick to their stock market, one day soon they will wake up to reality, broke.
The heck of it is not many believes in Gold or Silver or at least not enough. These folks are jumping into US treasuries, driving rates down.
ReplyDelete1204
ReplyDeletethats if you believe your being told the truth
the truth many are buying gold and silver
i love that many havent caught on yet i buy more cheap
also treasuries is manipulated
who knows whos fat finger is buying these
my gold is safe in my posetion
not some worthless paper with numbers and names
trust is earned
and i beleive in god
and money is gold
and paper is for starting fires
many have not caught on yet
gold 5 thousand is easy
silver 100 is realistic
paper will be worthless
which is what paper is worth
common sense is for common people
ReplyDeleterich people think things make the man
a truly rich man see these things are the chains of slavery
just a thought
Gold is just a commodity. I'm tired of hearing this buy gold bull shit every time I turn around. Gold buyers think they are so smart.
ReplyDeleteI'm stocking up on toilet paper. Six months after TSHTF the barter system will be in full swing. My TP will be traded for one bar of gold. That's right! One roll for one bar. So go buy up the gold SUCKERS!!!
I figure I'll prepare because it cant hurt.I can eat the food,sell the precious metals,drink the water,use and/or sell the guns and ammo if they are not necessary. But to need any of those things for my house and any others I can share with is not the option for my husband and me.
ReplyDeleteGet over the spelling thing, it's not a measure of intellegence by any means. Math might be a different story: The DOW has as of today lost month over month 9.4% of it's value, I can't even imagine what this does to P/E ratios (I follow the market, but I am not at all involved in it), that value loss should be enough to alert any participant to approach the situation with caution.
ReplyDeleteThink of the stock market as a giant casino (there is political involvement from the beginning, as a casino would not be approved for business, if it is suspected to fail the test of generating revenue for the government), then ask yourselves: "What are the odds of me winning?". Please don't forget to add the loss side to the equation if you are playing with a future other than your own; for example a family.
If you are addicted to the gamble and it does not affect any others, go for it; but go for it knowing that the system is gamed against you from the beginning; otherwise the profiteers would not have gathered around you in the first place.
My assessment and words; DOW down more than 9.4% month over month, do the math yourselves if you question me, it's fairly simple and there are no errors to dispute (within the realm of spelling we can dispute errors, but what the hec good does it do us, as we have already mentally received the just of the statement; my advice...just pay attention to where your investments are and what they are doing for you, and skip the spelling BS). Most people who offer advice on these open channels are not trying to debase each other, so try not to get tied up in the back and forth, just take the information that is good for you and forget about the rest.
Respectfully,
Anonymous
You're all screwed and it's about time. The system is rotten to the core, peopled by bastards and swine from the great triumvirate of evil known as Harvard, Yale and Princeton. Okay, you can throw in the few pukes from Northwestern University, still, all will die from these bastards poisonous thinking on monkey/money matters. It's going to be a glorious death/mayhem end to capitalist stupidity. There is no political/economic/social understanding that will garner the just and sustaining whole that sustains order in chaos for as anyone knows, all the experts are full of shit-learning from fake institutes of education. Education? Yeah, if your a bug crawling on the floor of life.
ReplyDeletePrecious metals are nice but what you really need for what's coming is to repent and cling to JESUS. Hell is coming to the world and you need HIM!
ReplyDeleteI forwarded this email to all the co-workers sitting around me as well as relatives. Immediately, I got mocked, laughed at via sarcasm replies such as "buy high sell low", "who cares" flocked into my inbox. People just don't get it.
ReplyDeleteSince mid 2009 I warned of an impending USD rally and thus EURO weakness.
ReplyDeleteIt should be a multi year trend according to my analysis.
The proprietary indicators I use in my technical analysis can identify trend changes before they occur.
In early 2007 I warned of an impending stockmarket crash.
I confirmed an equity bottom by early April 2009.
The March 2009 bear market rally ended recently and we will see new lows.
http://stockmarket618.wordpress.com