Richard Russell – Gold, Stocks & Massive Fed Manipulation
July 11, 2012
With continued uncertainty in global markets, the Godfather of newsletter writers, Richard Russell, wrote, “…we see the stock market up on Fed-created stilts … I’m stating that deflationary and deleveraging forces are still in command, and all the Fed’s manipulations are, and will, fail to turn the bear market into a new bull market.”
Russell also pondered, “Yes, we had the usual late-session rally … Is the Fed buying the Dow at the close? It wouldn’t surprise me.” But first, this is what Russell had to say about gold: “Most of my subscribers are interested in gold. All I’m going to say about gold is wrapped up in the chart below. Here we see gold in a large rectangle formation. The 1550 level has been tested numerous times and it has shown to be solid support.”
Richard Russell continues:
“Now gold has its choice of breaking out on the upside of the rectangle or on the downside … It’s obvious that there are buyers at 1550 or below, and that there are sellers near the 1800 area. All of which has given us a trading range of almost one year.