On the heels of the gold and silver surging along with the Dow, the Godfather of newsletter writers, 90-year-old Richard Russell, said the brutal bear phase in gold and silver is now coming to an end. The legend also discussed other key markets.
Richard Russell: "Everything that I read regarding the US economy is bullish. The only newspaper that dares to publish bearish comments on the US economy is Investor’s Business Daily. The mass of comments about the US economy is so lopsided, it makes one wonder if supply and demand has given way to Fed manipulation. I find myself wondering whether the stock market still retains any forecasting ability.
But let’s face it: the stock market is all that we have to go on. As I write, one hour before the close, both Industrials and Transports are higher by triple digits. At the same time, the four averages that I follow closely remain above their even thousand numbers. Industrials are above 17,000, Transports are above 8,000, the Nasdaq is above 5,000 and the NYSE is above 10,000. These are intraday figures, but if they close this way, I will regard it as bullish.
I consider the Nasdaq to be the market leader. The Nasdaq includes Apple, Google, Microsoft and Facebook. Apple alone comprises 7.4% of the Nasdaq, and Google comprises 4.8%.
Short rates have been held at zero by the Fed for six years, and the Fed is anxious to bring rates back to normal. The Fed’s target for the first rate raise is September. But because inflation is still below 2%, I doubt that the Fed will have the courage to raise rates this year.
The Brutal Bear Phase In Gold And Silver Now Coming To An End
Meanwhile, the world of precious metals has become interesting. Gold was higher by $14 earlier today. I am now bracing for the usual selling of precious metals in the afternoon. Silver appears to be leading the way, and as I write, silver is up 0.40 or 2.76% to 15.23. Gold has been trimmed back to plus 9.7 or 0.89% to 1103.8. If gold closes above 1100 I will consider it a triumph for the yellow metal. The gold miners, as in the case of gold, have awakened. GDX is up .87 to 14.27 and GDXJ is up 1.08 to 19.95. My thought is that the long and tedious correction in the precious metals is coming to an end.
As for your editor, my next birthday will make me 92. The older I become, the more deeply I push into the amazing world of spirituality. We are moving away from a world of anger, pain, and moving ever closer to the world where all will be free to love one another. My love to all my subscribers." I would urge all KWN readers around the world to subscribe to Richard Russell's 90 years of wisdom and remarkable writings at Dow Theory Letters by CLICKING HERE TO SUBSCRIBE.
***KWN has now released the incredible audio interview with Rick Rule, where he gives KWN listeners an incredible opportunity to have a free portfolio analysis done by Rick Rule himself. There is no cost or obligation to have one of the greats in the business do this for you and all listeners around the world can take advantage of this by having Rick Rule analyze their portfolios absolutely free. Rule made it very easy for listeners and the instructions are in the audio interview. Rule also discussed the gold and silver markets as well as what to expect from key global markets, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***KWN has also now released the incredible audio interview with the top trends forecaster in the world, Gerald Celente, where he discusses his prediction for a global stock market crash and panic in 2015, as well as giving the KWN listeners a peak at the just released Summer Trends Journal, and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
***ALSO RELEASED: Paul Craig Roberts – The U.S. Economy Continues Its Collapse CLICK HERE.
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