Richard Russell, author of the Dow Theory Letters, is sticking to his May call that a primary bear market signal had been confirmed. This is according to his interpretation of the Dow Theory.
He writes about what to expect in King World News:
The best way to describe the primary trend is to compare it with the great tide of the ocean. Once the tide turns down (as now) I compare it to a broad irresistible force. It’s a force that can’t be timed or described in detail.
It’s an invisible force, but it exerts a pull that has an effect on almost all stocks. The weaker stocks are swept along rapidly by the primary trend, while the stronger stocks are pulled along more slowly. I don’t know exactly how the market will be down, whether the decline will be slow and subtle or whether it will be a series of sharp declines.
One way or the other, it doesn’t matter to me. The important consideration is that most portfolios of stocks will be under water by year’s end…
According to Russell, it seems that by definition there’s not much explanation to the inevitable sell-off. Only that there will be a sell off.
Read more at KingWorldNews.com.
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