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 ...
John Stossel mentioned a betting website in his last episode that had been more accurate in elections than the pollsters. What website was it?
Oh c'mon, you're being silly again confusing rational thought with hysteria.
The ability to separate the two is what defines us against the libs, sheesh.
Two words: Wrist Rocket
On August 9, 1932, the government decreed the death penalty for those convicted of ‘political’ murder. The next night a band of Nazis invaded the home of a Communist worker in the Silesian village of Potempa and stomped him to death, kicking his larynx to pieces. When the killer s were arrested, tried, and sentenced in accordance with the new law, Hitler responded with threats and demonstrations. On Sept. 2, the government gave its answer: the death sentences were commuted to life imprisonment. The killers were freed by Hitler next year.The civilized men in the country did not know what to do. In the words of one historian, the moderates voiced desperate "appeals to reason… [But] their techniques were distinctly out of tune with the wild emotionalism that seemed to have gripped a large part of the nation" The civility cherished by the civilized men had finally been defeated by their ideas, although they did not know that this was the cause.
After years of preaching contradictions and of evading principles with an anti-ideological shrug, these men were astonished to see the nation conclude that man cannot live by principles, that reason is no guide to action, and that anything goes. After years of institutionalizing interest-group warfare, which they had justified as sacrifice or collective service, these men were astonished to see hostile gangs take to the streets and demand one another’s sacrifice. After years of undercutting the mind by preaching the primacy of gentle feeling (whether ‘progressive’, religious, or skeptical), these men were astonished to find that they had nothing more to say, and that there was no one left to listen. The moderates were helpless. The authorities were helpless. The killers were taking over.
On January 30, 1933, after due attention to every requirement of German law and of the Weimar Constitution, Nazi rule was made official… It took six months for the Chancellor to transform the country into a totalitarian state."
Leonard Peikoff - The Ominous Parallels
I consider myself very wealthy. My health is good, my marriage is solid, my kids are raised up and doing well for themselves, I have never been out of work...ever. House is paid off and so are the two cars. I also have liked every job I've ever had whether it was as a dishwasher or a regional manager for a major corporation. Every job I've ever had is fun to do and go to and I've only had one sick day in 30+ years of working. Even mowing the lawn on Saturday afternoons is fun for me. Or even shoveling snow in the wintertime.
Many of my hobbies cost me very little money. I love to hike in the woods with my dog and it takes me about a year to rotate through all the trails in my area. I go to the library every Saturday morning and borrow 5-7 books a week to read...or just browse through. I have over 15,000 songs in my music collection and add to it every week at very little cost.
Yes, I consider myself very wealthy. The Dow Jones can go down to zero for all I care. I will still get up in the morning with not enough hours in the day to do all that I like to do.
You have the only kind of wealth worth having, Sam. Good for you.
Wait, what?
It’s probably right.
Thank You! I have noticed the petty attacks lately, and that is what it reminds me of as well. Give it a rest already, and do the right thing by not posting at all if that is all you have is name-calling.
I have no idea what WTF you are talking about.
FReepmail.
You and your situation sounds very much like mine, I'm a wealthy man. Click on my name to see my dogs.
The one in the middle looks just like my dog - a black and tan border collie mix.
Simple. Buy an etf that is a short of an index or of a sector.
watch the price of oil. its currently falling fast because of economic downturns in china and europe and oversupply of oil in the USA.
if oil prices fall fast and far enough they will serve as a counter weight or massive stimulants to break against other bearish factors in the world economy. its already down to $68 or down nearly 25% from its peak of $86@gallon a short month or two ago.
The more you hear this bearish talk on the future state of the economy here there and yon—the more oil is going down.
Market liquidity is that which can be easily sold off.
Thanks blam.
if they are hungry are they going to kick down every door in town and attack UN food trucks or are they going to go off into the wilderness hoping to stumble on some random survivalist.
I'm betting we'll continue on high unemployment, steeper taxes, and probably a scarcity of some items.....
you don't need a 25 yro supply of food, but it would be nice to have your credit cards paid off, the vehicles,and to have as much paid on your HELOC as you can....but not closing it...
and its not a bad idea to have some extra laundry soap and toliet paper, and other essentials plus a couple months at least of canned goods and dry goods...thats just being sensible...
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