Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year

The Business Insider ^ | 5-18-2010 | Joe Weisenthal

[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.

[Mr. Jeeves]

The most widely known of the latter cases are the columns of prisoners who marched to certain death with no attempt to put up a fight, despite the fact that they vastly outnumbered the guards. This phenomenon, often taken as a sign of cowardice, has nothing to do with the concepts of courage or cowardice, which are inapplicable in this context. These prisoners did know the fate in store for them – they had heard about it from others, or they saw the smoke coming from the crematoria, or they smelled the burning flesh – but most of them could not believe or deal with a universe where such a fate, on such a scale and without any reason, was possible. The result was inertia, vagueness, mental drifting, and obedience. Some undoubtedly were not disoriented, but chose passivity deliberately, as a form of suicide.

The American voter, circa 2008. Though it was probably more a case of not believing a cool black guy with abs like that meant them any real harm.

[Kartographer]

Better the death of Mesada than the death of Dachau.

[Red in Blue PA]

And to recommend that all stocks be liquidated is EXTREMELY stupid.

So you think stocks will perform tremendously under obama's poolicies? If so, you are one of the few.

[Las Vegas Ron]

Stupid. You will die surrounded by boxes of ammo.

Wow, that post from you really surprises me, you usually have good insights to offer.

[Scythian]

He meant “spent ammo” ;)

[Screaming_Gerbil]

The most widely known of the latter cases are the columns of prisoners who marched to certain death with no attempt to put up a fight, despite the fact that they vastly outnumbered the guards. This phenomenon, often taken as a sign of cowardice, has nothing to do with the concepts of courage or cowardice, which are inapplicable in this context. These prisoners did know the fate in store for them – they had heard about it from others, or they saw the smoke coming from the crematoria, or they smelled the burning flesh – but most of them could not believe or deal with a universe where such a fate, on such a scale and without any reason, was possible. The result was inertia, vagueness, mental drifting, and obedience. Some undoubtedly were not disoriented, but chose passivity deliberately, as a form of suicide.

Good explaination.

In addition to that, I also think it was the thought of "But then what?" That even if you attacked and overpowered your guards and even escaped... Where would you go? What will you do when the rest of the German army comes to hunt you down and kill you?

Maybe they were hoping against hope that somehow they would be spared by some mercy or miracle at the last second whereas all those before them perished - instead of trying to confront an impossible to beat superior massive force.

It takes a certain mindset to fight against something knowing that you'll eventually be killed, but choose to die fighting taking as many of the enemy with you.

[DuncanWaring]

I may have to borrow that line.

Feel free to spread it far and wide, with my blessing.

[2 Kool 2 Be 4-Gotten]

Let me guess - the guy doing the recommending is already short the market.

[Las Vegas Ron]

I am still prepared for Y2K.

That is such a silly argument. The reason Y2K never came about is because most heeded the warnings and did what was required to negate the threat.

This is a similar time, you've got the warnings, question is are you going to heed them?

[Kartographer]

“This is a similar time, you’ve got the warnings, question is are you going to heed them?”

Why should we ‘Zero’ has plenty of money in his stash. ;-)

[Screaming_Gerbil]

Stupid. You will die surrounded by boxes of ammo.

Wow, that post from you really surprises me, you usually have good insights to offer.

I am guessing (at least I hope I am right) that bvm is referring to those who go out and buy guns and ammo without buying any other survival supplies. But his reply doesn't make that entirely clear...

[MrB]

Bullets don’t do you much good without a balanced supply of beans and bandaids as well.

I’ve added a fourth category, which I call “batteries” - alternative forms of energy generation.

[stephenjohnbanker]

“Real-Time: 29.20 Up 1.72 (6.26%) “

Why didn’t you post to me friday? LOL!

[wolfcreek]

What some might be overlooking is the fact extra guns/ammo or any other survival rations make great bartering items for things you don’t have. (after the SHTF, of course)

[ChocChipCookie]

Yeah, I haven’t seen Appleseed around in ages.

[bvw]

That post from me means that era in which fantasies of folly and infatuation with crappy ‘end-times’ novella thinking are a danger. Why? Because dangerous times are here — now.

This is an ‘inside’ battle. You will not be able to retreat to some compound, some hidey hole, some rural outpost and survive. We must fight close up and personal. Inside.

Our society will not devolve into the chaos imagined. Look to the lesson of Katrina. New Orleans was only one part, and the stories of chaos there during the event were wildly overblown. What happened in Mississippi, in Alabama, in Texas? Those are the examples of social order most Americans will uphold even if our currency collapses.

There are historical precedents.

[Kartographer]

Maybe he has already seen the ‘writing on the wall’ and buged out!

[Travis McGee]

PMs = Precious Metals ie gold and silver.

[Travis McGee]

That Webster quote doesn’t ring true to the era. Do you have attribution?

[Travis McGee]

Don’t forget the tiny 5 shot shirt-pocket revolvers also in .22Mag.