August 20 (King World News) – The Stock Market Has Turned Bearish
Richard Russell: “As subscribers know, I wish the best for America and believe that America is the hope of the world. Yet there are a few things that worry me.
I believe the US economy is sinking into recession as described by John Williams of Shadow Statistics. I believe we are in a period of deflation and deleveraging. I am convinced that the Fed knows the economy is contracting and this is the reason that they have not yet raised rates.
Professionals Selling Stocks To An Unsuspecting Public!
There are now 10 distribution days* in the S&P and 4 in the Nasdaq. Thus it is clear that many institutions are stepping to the sidelines. A combination of ten distribution days in the S&P and 4 in the Nasdaq comes to an ominous total of 14, and it puts the market under pressure.
As I write at the close, the Dow is down 357 and has broken below the critical 17,000 level. Transports are down 207 and have closed only 92 points above the 8,000 level. The Nasdaq has cracked the 5,000 level, down 141 to 4,877. To top everything else, my PTI is below its 89-day moving average.
Mighty Apple (AAPL) the world’s highest capitalization stock, closed down 2.36 to 112.65. The US dollar index closed down 0.42 to 95.94. Dollar holders are getting the message that the US economy is in trouble. At the stock market close, gold was up 18.6 to 1152.7 and silver was up 24 cents to 15.55. It is increasingly probable that the lows in the precious metals have been seen.
Russell Warns We Have Entered A Bear Market In Stocks
I believe the stock market has gone bearish; subscribers should stay with their position in physical silver and gold. Gold is a friend of free markets and the enemy of central banks and their fiat money. Rejuvenating a sick economy by creating more currency has never worked, and it won’t work this time.
* King World note: When Russell warns about “distribution days,” he is cautioning that the professionals are dumping overvalued stocks to an unsuspecting public.
Full article: Richard Russell Warns We Have Now Entered A Bear Market In Stocks And Fred Hickey Expects A Huge Rally In Gold! (King World News)