You 'Bear' Beware, You Better Take Care
by Richard Russell
by Richard Russell: If
I Were a Rich Man
of the importance of the Bear Signal, this article was posted
early in the holiday weekend for the benefit of subscribers who
are early readers. The "Market Action" portion has been
added and is posted below.
Dow Theory The D-J industrial Average
recorded a high of 13,279.32 on May 1, 2012. This Dow high was not
confirmed by the Transports. The two averages then turned down and
broke below their April lows. This action confirmed that a primary
bear market is in progress it was a textbook bear signal.
comment I consider the April-May action to be a continuation
of a primary bear market that started on October 9, 2007 with the
Dow at 14,164.53. We are now dealing with the latter part of the
primary bear market that began in 2007. Subscribers should now follow
a course of utmost caution. (The bear confirmation is particularly
valid because nobody seemed to notice it nor did any analyst
appear to be aware of it. I know of no analyst or advisor who stated
that we had seen a primary bear signal!) For evidence, see charts
of the Dow and the Transports below!
As for gold,
I think it will be under pressure for a while, but before this bear
market is over, gold will embark on a major bull move. The current
correction in gold will test every "gold-bug's" nerves.
The preferred gold position is to be in bullion gold coins.
high in the Dow on May 1.
the rest of the article
© 2012 321 Gold