kingworldnews.com / February 5, 2013
Today the Godfather of newsletter writers, Richard Russell, warned his subscribers “… the world’s supply of silver has grown dangerously low.” Russell also had some fascinating comments regarding gold, and stocks, including some great charts. Here is what Russell had to say: “If a problem has no solution, it may not be a problem, but a fact — not to be solved, but to be coped with over time.” (Shimon Peres) As I read the quote, I relate it to the FACT of the US’s debt. This is a situation that can never be solved honestly — it’s a fact. A fact that our children or our grandchildren will have to cope with. How they cope with it will set the course of the world of tomorrow.”
Richard Russell continues:
“The month of January was a winner, and according to Yale Hirsch (he edits the Stock Trader’s Almanac) if January is an up month the odds are that the rest of the year will also be up. Newspaper or magazine headlines seldom get it right, but courageous Barron’s keeps trying. The cover of this week’s Barron’s shouts in large red letters — STOCK ALERT! GET READY FOR A RECORD ON THE DOW.
I’ve posted five years of the Dow on the chart below. At the bottom of the chart we see the 89-day rate-of-change. It seems so easy — all the Dow has to do is climb another 174 points, and eureka, it’s at a new record high, and at the same time it has confirmed the new record highs in the Transportation Average. Wait, note that RSI is at its severe overbought zone for the first time in almost two years. In the last five years, RSI has signaled overbought five times. At the bottom of the chart we see the 89-day rate-of-change (this is momentum).
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