Tuesday, May 18, 2010

IS THE VIX SIGNALLING "CAUTION BEAR MARKET APPROACHING?"


The last time the 50 week pooped up thru the 200 week, and they were BOTH rising, the 2007 bear was here....that looks like it may be happening again.
We are looking for trend and it takes a lot to bend these longer running MA's, is why I use them with a weekly time frame.
We are looking for clues. This isn't the last word, many disagree, we're in a primary up move that is only being corrected.
For me personally after 75% move....you can have the rest.....given back drop!
D

2 comments:

Anonymous said...

Dow Theorist Richard Russell: Sell Everything Liquid
May 18, 2010 11:40am EDT by Joe Weisenthal in Investing
Related: dia, spy, xlf, ^dji, ^gspc, ^ixic

From The Business Insider, May 18, 2010:

WHOA!

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? ...

Marc R said...

I like RR, was a subscriber years ago,he really cares about what he is doing or he wouldnt be at 85?

Printing of money is not the answer, and with soveriegn debt we have gone even past the discussion of money itself, meaning our paper currency is "backed by the full FAITH of governements...the gov's like us are now $14 T in DEBT....and counting...that's what is current....others w/o prop job would default....are we seeing a real threat unravel towards paper fiat currency itself?