Richard Russell On GoldGold -- I use GLD as a proxy for gold. GLD hit a high box at 97 and then plunged yesterday (03/04/08) when gold was just ten dollars short of one thousand dollars an ounce. But yesterday's twenty-dollar swoon did no damage on the P&F chart. It would require a decline to 44 in GLD to produce a three-box reversal. Today gold and silver zoomed. Zoom means UP. Today's surge had me wondering whether one of the Sovereign Wealth Funds may have come in for a generous helping of gold.
Yesterday, a panic-slump in gold and silver. Today -- gold and silver at new highs! Amazing. Here's a P&F chart of our once "almighty dollar." Does that last uncorrected plunge down to the 74.0 box look excessive? Yeah, it does, but the dollar just keeps falling anyway. Today a new low, at least against the dollar's main competition, the euro. Somewhere along here we should get a dollar correction to the upside. Somewhere, but as that lovely old song goes -- "Where or When?"
Richard Russell March 5, 2008 The inimitable and venerable Mr. Russell gained wide recognition via a series of over 30 Dow Theory and technical articles that he wrote for Barron's during the late-'50s through the '90s. Through Barron's and via word of mouth, he gained a wide following. Russell was the first (in 1960) to recommend gold stocks. He called the top of the 1949-'66 bull market. And almost to the day he called the bottom of the great 1972-'74 bear market, and the beginning of the great bull market which started in December 1974. |
