word, mocking bird?
Richard Russell snippet
Dow Theory Letters
May 18, 2010
May 17, 2010
...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.
Question -- Russell, if you're so damn smart, then how
is it that most of the economists and analysts disagree with
you? The fact is that most experts are now bullish on both the
economy and the stock market.
Answer -- I think Washington and the economists have brain-washed
themselves. They are so blasted anxious to be optimistic, they
are all listening to each other and all thinking alike. And when
everybody is thinking alike, nobody is thinking.
Gold -- I just talked to Leon, my old and trusted friend
and coin dealer (858 459 2228). I asked Leon about Krugerands.
"Can't get 'em," he said, "Europe's cleaned 'em
out -- they're buying all they can find." But American Eagles
are still for sale.
America's greatest fear is deflation, as per the 1930s. Germany's
greatest fear is inflation, as per the 1920s.
Headline in the May 16 Financial Times -- "GERMANS
LEAD GOLD RUSH FRENZY. We have some extraordinary sales to German
customers," says Deborah Thomson, the Rand treasurer. "The
refinery which usually sells 2,000 coins to each customer at
a time, said that last week it received an order from a German
bank for 30,000 coins. Another banks requested 15,000 coins."
Late Notes -- Another nasty and misleading day. Dow up,
Trannies down. More "internal market" destruction.
Breadth on the NYSE down. Down volume on the NYSE was 59% of
up + down volume. My PTI was down 4 to 6112. MA was 6076, so
my PTI is bullish by 36, lowest number in months.
As we used to say, "What's the word, mocking bird?"
The word, dear subscribers is "trouble ahead."
Russell suggestion -- 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.
And as we say a fond good bye to Monday, we look forward.
Russell belief -- behind every government or agency lies
a secret crime against either the American people or the US Constitution.
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