Richard Russell – Silver & The Nastiest Stock Market In History

Tuesday, April 8, 2014
By Paul Martin

KingWorldNews.com
April 8, 2014

With continued turmoil and uncertainty in global markets, today KWN is publishing another important piece that was written by a 60-year market veteran. The Godfather of newsletter writers, Richard Russell, is urging people to buy physical silver because something is “brewing” in the silver market. Russell also discussed shorting stocks and included a a fascinating chart of the silver/gold ratio.

Russell: “This is what I call an “erosion market.” It’s one of the nastiest types of markets that you’ll ever have to deal with. It’s illustrated in the Dow chart by a large cluster of back and forth movements, appearing almost like a solid block of fluctuating movements. This is a market where you buy a stock and a day later you’re sorry you bought it as the stock suddenly drops 10%.

By the same token, this is a market where you short a stock and a day later the stock rallies six points and you’re stopped out. An erosion market can be as costly as a bear market. Ten minor losing trades, when combined, can add up to one large, nasty loss. I’ve asked my subscribers to stay out of this market, because an eroding market can murder any portfolio over time.

I thought Friday was a key sentiment day. On Friday I thought outright greed and extreme optimism suddenly turned to questioning with just a touch of fear. The unimpressive employment statistics caused a strange and abrupt halt to the optimism. It was as though the pros in unison thought — “Has the Great Recession really ended?” At Friday’s close the Dow Industrials and Transports and NASDAQ were all down triple digits for the first time in many months.

The Rest…HERE

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