Posted on 05/18/2010 7:05:51 AM PDT by blam
Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year
Joe Weisenthal
May. 18, 2010, 8:57 AM
Image: US Army
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:
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
[snip]
The DJIA is up 62 as I post. See here.
(Excerpt) Read more at businessinsider.com ...
Matt, did you have the mod pull that thread you posted about ‘Arm Thy Neighbor’?
So Oklahoma is a good state in which to practice predatory buying of real estate with the intention of turning the owners into tenants or evicting them,
the law must allow easy fast evictions, too ... not everywhere does
This is a real hard way to make money, unless you have the stomach for it. Lots of human misery for sale and money to be made from it
I did some googling on Richard Russell and found his recent address was 6104 Avenida Cresta, La Jolla, CA 92037, and he once contributed $500 to Robert Reich for Governor of Massachusetts. He sold his house in February for $3.6 million. He's getting into cash I see. He seems moderately rich for an old man, but I would guess he didn't become rich playing the stock market.
If They Don’t Stop, Eventually the Markets Will Make Them Stop
By Gary Kaltbaum | TradingMarkets.com | May 18, 2010
http://www.tradingmarkets.com/stocks/commentary/if-they-don-t-stop-eventually-the-markets-will-make-them-stop-951405.html
Greetings from Italy. Recommend the country highly. I am writing this on Saturday getting ready to fly back to the U.S.
“IF THEY DON’T STOP, EVENTUALLY THE MARKETS WILL MAKE THEM STOP!” This is a quote I have lived by for more than a couple of years. The meaning of the quote is simple. If governments around the world do not stop their outrageous spending leading to outrageous deficits, the markets will eventually stop them.
The markets stopped Bear Stearns, Lehman, Washington Mutual, Wachovia and Merrill Lynch...and almost stopped Citigroup and Bank of America. The markets are now working on countries, not just financial companies. I don’t need to tell you which countries. They are all in the news. They are mostly countries where one group of people believes they are entitled to other people’s money. Unfortunately, we are now seeing it in the good old USA as over 40% of wage earners do not pay taxes and now we have an administration and leadership that is determined to redistribute as much wealth as possible, while spending this country into oblivion.
This is a clear lack of respect for taxpayer dollars by politicians, who for the most part, have never run a lemonade stand. They can fool the voters but they cannot fool the markets. Eventually the markets will fight back and that is exactly what we are seeing right now.
Simply put, over the past couple of weeks, markets around the world have come under severe distribution. I do not believe the 1000 point day was real. I believe it was a huge bad trade...but that was resolved quickly. What has not been resolved is a market that for the most part has put in an important top. Very simply, the market’s technicals have been deteriorating quickly...and that’s in spite of last Monday’s 400 point gap to the upside.
For me, I think the probabilities are decently strong that the recent highs could be the highs of the cycle. The deterioration has been sudden and been strong...too much to ignore. Most sectors have topped. Most countries have topped...especially Hong Kong, China, Japan, the UK...and of course, Greece.
I can pretty much go on and on about all the sectors that have topped...all the stocks that have topped...and recently, the many leaders that have topped. The main point I want to make is that I do not think the action we are seeing is just a “reaction” to the news out of Europe...and will end quickly as so many are saying.
The only area that is actually emerging and showing relative strength here is GOLD/SILVER...and that’s probably not a good thing. It is the market yelling that using more debt to fix a debt problem ain’t going to work. Near term, the action is insane. We can bounce...we can go lower...but I am not worrying about the near term here.
Amazingly, governments around the world refuse to learn any lessons about balancing their checkbooks and think they can just spend their way out of trouble. It just doesn’t work that way. And while I have been away, I still kept in touch with what the politicos have been saying...and still see nothing on the horizon that tells me they get it. In fact, the one person that does get it, Governor Chris Christie of New Jersey, continues to be blasted by those that think the taxpayer is an unlimited well of money to be handed over to them.
Gary Kaltbaum is an investment adviser with over 18 years experience, and a Fox News Channel Business Contributor. Gary is the author of The Investors Edge. Mr. Kaltbaum is also the host of the nationally syndicated radio show “Investors Edge” on over 50 radio stations. Gary is also editor and publisher of “Gary Kaltbaum’s Trendwatch”... a weekly and monthly technical analysis research report for the institutional investor. If you would like a free trial to Gary’s Daily Market Alerts click here or call 888.484.8220 ext. 1. http://www.tradingmarkets.com/stocks/commentary/if-they-don-t-stop-eventually-the-markets-will-make-them-stop-951405.html
I agree, but for a different reason. I don't trust gold because certificates are worthless if the commodity they are supposed to represent doesn't exist.
I have some of those coins, and a very little gold. I pay cash. They can’t take what they don’t know you have.
You can take a short position on entire indexes by buying these exchange traded funds (ETF):
Pro Shares Ultra Short Industrials (SIJ)
Pro Shares Ultra Short S&P 500 (SDS)
Pro Shares Ultra Short Dow 30 (DXD)
With the situation in Greece, I have made a bit of money lately with Pro Shares Ultra Short Euro (EUO)
ETFs trade just like stocks so you don’t need a margin account to take short positions.
Always protect yourself with tight trailing stops.
I bought many Krugerrands in 1993 ($402.00 each) and junk silver last year. I'm set.
I think that there won't BE a November that all seem to count on. The monsters in the White house (they are monsters) - and those behind them - can't allow the kind of loss they're facing to occur. The moment that they understand that they can't intimidate or defraud their way out getting their asses handed to them in the voting booth, look out. They're on the cusp of achieving absolute power. Who is naive enough to think that little things like the rule of law and the Constitution are going to get in their way? These monsters are willing to spill oceans of blood and pile up mountains of corpses if that's what it's going to take. Their POV: better to rule in hell than to leave us alone.
Neither of us was referring to “certificates”.
Hard, physical, “in the hand” gold and silver.
Personally I don't buy that view. It just seemed to me that it was an urbanite view of surviving among a bunch of gun toting racist rednecks in the country.
It's not very far-fetched, as the "rule of the day" will be by "power" and that will be by whomever can enforce that power -- by their will.
And that means, when the "rule of law" is gone, those who hold power over "life/death" (i.e., being able to kill and enforce their will) and/or food/starvation and/or medecines/doctors and/or shelter/housing -- will "rule the day".
Now, eventually, and in the long-run (perhaps a generation or two or even more) -- "society" and the "rule of law" will come back, but I don't know about the Constitution, and if it will ever come back from something like that. New power structures will have been set up, new local "laws" by those "ruling authorities" and they won't give up power very easily (that's the way it always is).
So, it will take a long time to "build back up" any such structures -- and there's a good question as to whether this country will ever be a "complete country" again, like it was before -- but rather, split up into segments, each one being its own country and ruling its own people according to how they choose to be ruled.
There's no guarantee we'll ever see the "United States" again after that.
There's only one way I can see that the "Unites States" (as a "unified country") can maintain itself -- and that would be by suspending the Constitution and enforcing martial law and by sheer power and force -- keeping everyone in line and shooting people on sight, if they violate the least little thing with martial law. In that case, you might keep the Unites States together, as an "integrated country"...
Give it a rest
At 12:51 PM 4/11/2010, my friend John Meehan wrote this letter to the editor of the WSJ:
After thousands of hearings, still no one ‘gets it.’ Bankers, dealers, regulators, legislators, academics, brokers, fund managers, Nobelists—every field with the best of its experts at the top and super-stars on parade . . . not one understands it! If any one of them does, there has not been a peep about it in the press. A few seem to come close, but then shy off the mark at the last moment.
If still no one ‘gets it’ in the next 70 years, it, the cause(s) of worldwide panic and crises in finance, policy, and economics will recur. Bet on it.
Peggy Noonan today and on Friday Dennis Berman (one of your deputy bureau chiefs reviewing Roger Lowenstein’s book, “The End of Wall Street”) both repeat the same sad litany of putative causes and shopworn remedies one more time.
There is a single intrinsic cause. (If cause is too strong a word, use ‘overpowering conditioner’ instead.) The single, efficient, causal factor underlying the litany is, in a word, confidence. When everyone has it, all is well. Then it runs to one extreme or the other, as is its habit—too much conifidence or too little, worldwide. Social chaos and tragedy ensues. This happens about every 70 years, just long enough for two generations to forget what it felt like before. Then it repeats, too much confidence followed by too little, followed by a long train of futile analyses by experts and commentators in the vein of Ms. Noonan’s and Mr. Berman/Lowenstein’s observations.
You can read how, why, when, and what happens by typing Copernicus, Warren, John, and Me into Google on the internet. You will find a scientific focal point for interdisciplinary timetable discovery, the first step toward ameliorative political fiscal and monetary policy-making.
John Meehan
Orlando
Cool thanks, I will investigate.
RUH ROH !!
So Oklahoma is a good state in which to practice predatory buying of real estate with the intention of turning the owners into tenants or evicting them,
Well, that's what you get when you keep the government "out of people's business" ... and you enforce "personal responsibility" ... I mean one can't have it "both ways" and keep the government out of business and out of personal affairs and not make the government "baby-sitters" for everything and anything that people end up having happen to them ...
That's one unfortunate result of keeping the government "out of your business" -- your "business" can go bad, really quick and then there's nothing you can do about it ...
Either you have a society in which you have the absolute minimum of any government interference, or else, you start having the government step into "this injustice" and "that injustice" and this over here and that over there ... and "there you go again" ... :-)
Do you think I live in a gold house, wear gold pants and own a gold tin-opener?
You should have no more than 25% of your assets in gold/precious metals. Use the rest to buy commodity stocks and survival goods.
Reason: the up-and-coming crash in fiat currency will not lead to the end of property. It will lead to social and political upheaval and then a reversion to a gold-based currency. When that happens I intend to use my gold to buy stuff.
“Always protect yourself with tight trailing stops.”
ABSOLUTELY!!
And oceans of blood is what it would take to prevent the American people from having a general election.
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