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Richard Russell continues:


“This surpassed a Jackson Pollock painting that sold in 2006 for a record $140 million.  The $250 Cezanne is one of a series of five paintings.  The other four are housed in museums around the world.  Qatar, the oil-rich kingdom, is trying to establish itself as an intellectual center.


(Another) group is attempting to form a diamond ETF.  They will buy gem quality certified diamonds up to six 6 carats in size.  Russell Comment:  Gem quality diamonds are scarcer than gold, but if the fund is established, it should push up the price of gem-quality diamonds, which are growing more expensive by the month. 


The fund, if it is successful, will also increase the liquidity of diamonds, as well as educating the public as to the intricacies and science of diamonds.


Every once in a while I like to take a very broad view of all the markets -- the US and the rest of the world.  So here goes.  The first chart below includes the Dow Jones World Stock Index.  Here we see the World Index forming a top below a preceding top and then sinking below its (blue) 50 day MA. Not very good.




This second chart below shows Morgan Stanley's world stock average, minus the US stocks.  This Index is a bit weaker than the one above, showing that US stocks are stronger than stocks in the rest of the world.  Here again we see declining tops, which are usually bearish, and the Index has now fallen below both its 50-day MA and its 200-day MA. Conclusion -- weakness.




This third chart shows the Wilshire Index and its three upward surges over the last three years.  Of course, the Wilshire deals with almost all US stocks (over 5,000 of them) on our three US stock exchanges: the NYSE, the AMEX and the NASDAQ.  At the end of the third surge, a little head-and-shoulder pattern has formed. 


These tiny H&S patterns can be powerful; a Dow close below 12500 would be bearish, but the big picture of the Wilshire is clearly bullish.  And it shows that US stocks are stronger than overseas stocks.  So if you must buy stocks, stay with the best sector of US stocks (obviously the blue chips with the best ratings and a long history of raising their dividends: PG, ABT, JNJ, KO, PEPSI, etc.)





Notes:  Monaco real estate is the most expensive on earth.  According to Citi Private Bank, the average cost of real estate in Monaco is $5,408 per square foot.

................................


These are strange and disconcerting markets.  Will Dec. gold ever close above 1700?  Only the shadow knows, and he isn't talking.” 


To subscribe to Richard Russell’s Dow Theory Letters CLICK HERE.


© 2012 by King World News®. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed.  However, linking directly to the blog page is permitted and encouraged.


Eric King

KingWorldNews.com

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