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So far, the decline in the market has been fairly orderly; no panic, no
hysteria to get out – even the VIX has remained calm [but] I wonder how much longer the decline will continue to be orderly. Frankly, there’s something eerie about what’s happening and, to be honest, what’s happening is almost beyond analysis. I have nothing to compare it with….I really have to go on my intuition and instinct at this point – and my instinct is to get in cash.
So says Richard Russell (https://ww2.dowtheoryletters.com/) in edited excerpts from an article posted exclusively on King World News which can be read in its entirety here.
Lorimer Wilson, editor of www.munKNEE.com (Your Key to Making Money!), has edited the article below for length and clarity. This paragraph must be included in any article re-posting to avoid copyright infringement.
Russell goes on to say, in part:
There are so many potentially bearish scenarios in the wind that my head is spinning.
- As of today’s closing, Dow down 14 out of 16 sessions! This is one you can tell your kids about – and still no collapse in breadth, and still no crash.
- Last night, I noted that the Dow futures were down 55 points. I can’t remember ever seeing a series like this in my lifetime.
- The negative spread between Lowry’s Selling Pressure Index (supply) and their Buying Power Index (demand) has widened to 184, the widest on this series. The wider the negative spread, the more bearish the picture.
- The two Dow Averages have plunged below their April lows, delivering a bona fide Dow Theory bear signal.
So yes, this is a continuation of the bear market – but it’s starting out in a stranger way than any bear market I’ve ever seen. I have nothing to compare it with….I really have to go on my intuition and instinct at this point – and my instinct is to get in cash.
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