Russell getting testy as the market gets worse,

March 4, 2009 -- Saving the losers, and no accountability. The US is now in the business of doing everything vs. not doing anything. I don't know whether the current policy of shoveling out money to everyone -- dying corporations, slumping industries, collapsed banks, inefficient businesses, will work. Personally, I doubt it. But the Obama people want to look "busy," they want to look as though they are addressing the nation's severe problems as opposed to sitting on their dead asses. I disagree with the Obama policy. Bear markets exist for the purpose of correcting the faults and scams and greed and inefficiencies that grew out of the preceding bull market. That's not what's happening in the US now. The losers and inept are being saved with massive infusions of cash. Bank presidents who allowed their banks to load up with fraudulent mortgages are given bonuses, corporations who couldn't learn to compete are being saved from bankruptcy, executives whose stocks are in the single digits are being rewarded and given outrageous golden parachutes or monster bonuses. Where's the accountability? I just read where 92 tapes made by the CIA interrogating prisoners have "disappeared." Who gave the orders for those tapes to be destroyed? Who is the individual? Who is accountable? What's his name? Is anyone accountable for anything these days? And what about the inept SEC which ignored report after report on Bernie Madoff's massive fraud? Was anyone at the SEC fired? Was anyone responsible at all? Where's the darn accountability? I say "Let the bear market have its way." A bear market has a way of cleansing the economy. It's called "firing" or "bankruptcy." I have a sinking feeling that the current policy of "holding everything up," not allowing the bear to do its work, is going to backfire. The Law of Unintended Consequences is going to come to the fore. I'm not going to guess at what the unintended consequences might be. But I will venture a guess -- the unintended consequences will not be good. They'll be a bloody disaster. We inhale and we exhale. The market turns bullish and the market turns bearish. Night follows day follows night. It's nature. The market is made by men and women, and normally the market inhales and exhales (rallies and declines). To try to interfere with the primary trend is to go against nature. The end result will not be good. March 2 produced a severe 90% down-day. A 90% down-day is a day with compression on the downside. Normally, following a 90% down-day, the pressure is released via 2 to 7 days of rebound. Yesterday should have been one of those rebounding days. It wasn't. Today looks like the "long-lost' rebound. The Dow has been down 9 of the last 11 trading days (81.8%). The market is severely oversold. Recently, every rally in the market has been met by insistent sellers. The people want OUT, and every rally affords them another chance to get OUT. .................................................. Note - Today Bernanke announced that the recession could end later this year. Be careful Ben, your words may come back to haunt you. Bernanke knows no more than you or I as to when the recession will end. Go ask Alan Greenspan, he probably knows.

He was BEARISH stocks from 2002 to 2007, THEN turned bullish. He was right from 2000 to 2002, and he's been right since Dow Theory Sell signal sometime in 2008. And he was right about gold from 2001. So, half right, half wrong. Typical for yet another random market guru, even if he writes well, and has been doing so since 1958. TDM

He was BEARISH stocks from 2002 to 2007, THEN turned bullish. He was right from 2000 to 2002, and he's been right since Dow Theory Sell signal sometime in 2008. And he was right about gold from 2001. So, half right, half wrong. Typical for yet another random market guru, even if he writes well, and has been doing so since 1958. TDM

He was BEARISH stocks from 2002 to 2007, THEN turned bullish. He was right from 2000 to 2002, and he's been right since Dow Theory Sell signal sometime in 2008. And he was right about gold from 2001. So, half right, half wrong. Typical for yet another random market guru, even if he writes well, and has been doing so since 1958. TDM

He was BEARISH stocks from 2002 to 2007, THEN turned bullish. He was right from 2000 to 2002, and he's been right since Dow Theory Sell signal sometime in 2008. And he was right about gold from 2001. So, half right, half wrong. Typical for yet another random market guru, even if he writes well, and has been doing so since 1958. TDM

at least he's not a w@nker who's done sfa with his life.

WTF ? One post was enough. Just like a young green horn to whip on an elder. Pick on someone your own age, you putz.

He was BEARISH stocks from 2002 to 2007, THEN turned bullish.

He was right from 2000 to 2002, and he's been right since Dow Theory Sell signal sometime in 2008.

And he was right about gold from 2001.

So, half right, half wrong.

Typical for yet another random market guru, even if he writes well, and has been doing so since 1958.

TDM

One thing I'll say about gurus is that they often entertain. It took me a decade to
really figure out the game, and I spent a few $$$ with RR almost a decade ago.
Never made me any money and I see why.

Dow Theory works even though I don't use it (found something else). RR is no
master of DT. Goto www.thedowtheory.com for the exact rules. Well almost
exact. He fails to mention that you must use closing prices. I read his recent
book. Boring but much better than the average BS.

D

The Dow has been down 9 of the last 11 trading days (81.8%). The market is severely oversold. Recently, every rally in the market has been met by insistent sellers. The people want OUT, and every rally affords them another chance to get OUT.

Market went sideways last two months.....Plenty of time to get out.....Unless he waited for the Dow Theory Sell Signal to get out.....

He was BEARISH stocks from 2002 to 2007, THEN turned bullish.

He was right from 2000 to 2002, and he's been right since Dow Theory Sell signal sometime in 2008.

And he was right about gold from 2001.

So, half right, half wrong.

Typical for yet another random market guru, even if he writes well, and has been doing so since 1958.

TDM

One thing I'll say about gurus is that they often entertain. It took me a decade to
really figure out the game, and I spent a few $$$ with RR almost a decade ago.
Never made me any money and I see why.

Dow Theory works even though I don't use it (found something else). RR is no
master of DT. Goto www.thedowtheory.com for the exact rules. Well almost
exact. He fails to mention that you must use closing prices. I read his recent
book. Boring but much better than the average BS.

D

Just an observation of Dow Theory... I have read every one of Dow's , William Peter Hamiltion and Robert Rhea editorials numerous times.......and one forgotten corrolary to the Theory is "that each suceeding confirmation of the primary trend carries less validity than the previous one"......am not saying that the recent reconfirmation is not valid, only to be more aware of a bear trap..............though, most often , a bear trap occurs when one average fail to confirm the other......of note is that the Industrials have broken the 2002-2003 lows and the Transports are far from their respective 2002-2003 lows qhich was around 1903 intra day.