By Richard Russell
Abrupt and difficult times lie ahead. I maintain my advice regarding holding physical silver and gold. I also stand by my choice of living in La Jolla. Despite what you hear about the drought, the west coast will survive and thrive.
Keep your eye on the US dollar and the Transportation Average. They are indications of what lies ahead. Below, the ultra-sensitive Transports have broken below their 200-day moving average, a negative indication for the stock market.
In this next chart we see the dollar in a dangerous parabolic rise. For the first time this year the dollar index has broken below its 50-day moving average.
As I’m writing one hour before the close, the Industrials are up 108 to 17,950, but still below the critical 18,000 resistance level. At the same time, the Transports are up 102 to 8,721. The Nasdaq is up 30 to 4,949 and just below its critical 5,000 level. Gold is down 7.9 to 1182.4 and ... Log in or subscribe to continue reading.