Another….. Warning

Posted by Richard Russell - Dow Theory Letters

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Richard Russell has made his subscribers fortunes. One of the best values anywhere in the financial world at only a $300 subscription to get his DAILY report for a year. HERE to subscribe. Amongst his achievements Richard was in cash before the 2008/2009 Crash and he has been Bullish Gold since below $300

Ed Note: Richard Russell is bullish Silver and holds one of the largest single positions he has held since the 1950’s in the precious metals.


(Yesterday’s action) – Tack on another nasty day to the record. The Dow closed on its ass, down over 100 points and at the low of the day. Transports and Utilities were down in step with the Dow. My PTI was down a full 8 to 6009, MA was 5997, which means that my PTI remains bullish by a thin margin of only 12 points. If my PTI turns bearish, I fear the market will turn really ugly. If that happens, expect US consumers to pull in their horns even further. Bear markets and bad news feed on each other. Ironically and perhaps tragically, the sinking stock market is occurring in the face of optimistic news, mostly emanating from the administration which is either lying or clueless.

Down volume on the NYSE was 78% of up + down volume. Last Thursday was a 90% down-day, and the fact that the market failed to bounce after that I take as bearish.

Data to Monday


As for my Big Three, the Dollar Index was down, bonds were lower and Apr. gold was up. ABX was up 1.28 to 34.57. NEM was up 1.82 to 44.41.

Another warning, please be out of common stocks and this does not include gold shares. I like NEM, ABX, AEM. Remember my rule — our job now is to lose as little money as possible. And keep your day job if you have one.

(Ed Note: Russell’s PTI – “The PTI is my proprietary composite of 8 items, each one dealing strictly with market action. So no subjective considerations, no guessing, no adjusting — these 8 items are based on actual daily market action. I’ve been running the PTI daily since 1971. The PTI monitors the sub-structure of the NYSE. I liken it to the water in a bathtub. The Nasdaq (the soap) can bounce up and down all it wants, but it’s the level in the bathtub that tells us what the great primary trend is doing. The PTI is the level of the water in the tub.”





The 85 yr. old writes a market comment daily since the internet age began. In recent years, he began strongly advocated buying gold coins in the late 1990’s below $300. His position before the recent crash was cash and gold. There is little in markets he has not seen. Mr. Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron’s during the late-’50s through the ’90s. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-’66 bull market. And almost to the day he called the bottom of the great 1972-’74 bear market, and the beginning of the great bull market which started in December 1974.