Skip to comments.Dow Theorist: Sell Everything Liquid, You Won't Recognize America By The End Of The Year
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
May. 18, 2010, 8:57 AM
Image: US Army
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
The DJIA is up 62 as I post. See here.
(Excerpt) Read more at businessinsider.com ...
http://www.bullionbypost.co.uk/ will buy at 98% of spot price.
There’s got to be a better deal than 90% in the US.
I can never remember where that thread is. Every once in a while, someone posts the link, and it has thousands of posts, which makes it strange that it’s so hard to find!
Thanks for the very kind recommendation!
I have an old (bakelite) radio with tubes that still works. I'm saving it to use after the EMP attack.
You are welcome.
Things are stabilizing for better or for worse.
Ultimately the time to worry about a Crash was in 08 or 09.People raving about the impending meltdown or this country changing overnight must have skipped out on last year.
Because normally this place isn’t usually like that.
And one more:
Equities are overpriced; here’s how the crash will unfold
History and the numbers say we’re due for a giant correction; here’s how it’s going to unfold.
In two tumultuous weeks in October 1987, the stock market shed nearly one-third of its value in perhaps the second most notorious crash in U.S. history. It could happen again. Don’t be deceived by the rebounding economy, any more than the bulls should have been misled by the balmy climate during the late Reagan years. Right now, stocks are extremely vulnerable to the same scenario. The reason: The market is even more overpriced than when thunder struck on that distant Black Monday.
That doesn’t mean that a giant correction is inevitable; far from it. But the quasi-bubble that followed the big selloff in late 2008 and early 2009 makes the probability of sudden downward swing far more likely. And today’s high prices make it practically certain that investors can, at best, expect extremely low returns in the years ahead.
“Tell them to get out of debt..”
Why would you do that if you expect the end of the world as we know it?
Same thing with converting physical stuff to paper money.
You’re site is awesome!
I hope everyone bookmarks it!
Yeah, kinda pisses me off, I’m telling everyone to stock up on can goods. Do they? No, but if the stuff hits the fan they will all come over to my house. I’m having to buy way more then I should for the grass hoppers. Well they are going to pull garden gaurd duty if they want to eat. lol.
No, he’s telling me that it’s the counties and it’s for taxes ... he says that he gets them at the counties when they do their tax sales... if no one buys, then the country owns the property, themselves. If someone buys, then that person is the new owner.
But, I do remember the recent story about the returning vet who had his house sold out from under him for back dues on the HOA ... and that was a shame...
Actually, it’s a shame for all these people... as they’re sitting in about $100,000 house that someone else just walks in there and picks up for a few thousand.
The guy was telling me that he just goes up to the people and tells them, “If you want to stay, this is how much rent you’ll be paying now. Otherwise, get out in three days!” ... hoo-boy! ...
why not just keep some radios in a small room with Farraday protection?
Buy a metal dog kennel and run a ground wire to a cold water pipe.
usgoldbuyers prices depends on the amount of gold. Example if under 5 toz they give 90 percent, 5 to 50 toz they give 95 percent, greater then 50 toz they give 98 percent. If bullionbypost gives 98 percent, I will check that out. Thanks for the info. Bottom line is do not go to jewelry stores, pawnshops and most TV advertised gold buyers.
I don’t believe money market aaccounts are FDIC insured or guaranteed (for what that’s worth from the obama govt)
check with the holder
I took all mine out of Fidelity money market after the 2008 crash when MM shares were trading below net
thanks I understand options, back in the 70’s I begged my boss to loan me 5k so I could buy silver options. He wouldn’t, silver was at 5.75 and went to 60. Man I was pissed.
The problem with that is that all you really get is a piece of paper. If the sh!t hits the fan, it’s still going to be up to you to try to hold it.
Face it. At some level there is no “safety”.
Hope it works out for you Fee.
bullionbypost are based in the ‘Jewellry quarter’ of Birmingham UK, and while they have a size taper on selling gold, they seem willing to buy at melting-pot price.
I keep those sorts of things in 55 gallon drums with grounds.
Its really messed up
Money is a liquid asset. Where do you sell your money?
I advise buying 5-gallon buckets and filling them with beans.
Oh, and bullets in major calibers.
Oh, and any kind of medicine that you can get your hands on.
I just search it too ... even went to Travis McGee’s ‘in forum’ listings and couldn’t find it! Hmmm, can’t figure this one out because I know that thread was up for a few days.
He exempted jewelry & rare collectible coins.
Obama's low & unreported income constituents will be protected by the former and his liberal elite constituents have their gold in the later - or out of the country all together.
Of course that leads us in the middle in the cross-hairs - as all does all of the Obama agenda.
Which Fidelity MM was that? There are a few in my plan?
120 posts in 50 minutes.
Not a good sign.
recourse varies by state- liberal states usually offer chance for owners to redeem the lien, at a profit to the lien buyer
this happened to me several years back when the county sold my condo out from under me for a $55 sewer bill that was never delivered (nor any of the follow-on notices) because the tenant threw everything addressed to me in the trash
someone bought my condo for $300 lien (cost plus penalties), I had to pay about $500 to get it back, profit went to the lien scavenger, better that than the deed to my property!
Only way I found out was my property tax payment was returned because of the unpaid lien recorded on it, lucky I had time in redemption window to respond
Back then their was a statutory link between gold and the value of the dollar.
Now, they can devalue easily without a gold confiscation.
blam, you buy gold and silver with your soon-to-be-worthless paper money.
You raise an important issue.
If you buy gold, bury it and - to insure against accident - tell exactly ONE other person (that you trust with your life) where it is.
If the new FDR tries to take your gold, wait him out. That gold isn’t going to rust.
Tribalism would rule the day and forget about gold and silver, the person with the antibiotics would be king.
beans, wheat, ammo
How much would you be willing to spend for a loaf of bread if you didn’t have any food left? Or for that matter how much of your gold would you be willing to spend for a clean cold glass of water?
Shorts do well in panics.
Shorts do well in panics.
There’s always money to be made...up or down
Read or watch Harry Dent, the Great Depression Ahead (written 2008), I think he is on track with this one (even though someone always points out how he blew it with the Clinton stock market prediction)
Who said “Demographics is destiny”? I think that has validity.
Bad times in 2011-12, but the sun will eventually shine again.
It will shine brighter for people who prepare and aren’t wiped out
(you can get the full 9 part lecture on youtube)
FOr hard corps end of the world viewpoints, try SurvivlBlog.
Soe very strange things there from time to time.
Good stuff as well.
recourse varies by state- liberal states usually offer chance for owners to redeem the lien, at a profit to the lien buyer
This guy, yesterday (and I've known him casually for a while, being that he owns one of the houses in the neighborhood that he rents out) -- he was saying that there used to be, in Oklahoma, a period of time for recourse, but that it's been changed now and that now they give him the deed (anywhere from right then to within 48 hours), and there's absolutely no recourse by law, for the former owner. He was quite emphatic about that to me (seems he made a big point of it, too ... LOL ...) -- in that "It's over! It's done, and there's nothing the previous owner can do about it!"
I'm not kidding... he got excited about that ... LOL ...
He was also saying that "This is a great time to make money!" (talking about picking up stuff like this at tax sales).
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
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.