NASDAQ_400
04-11-2003, 12:03 PM
Its so very quiet today here, so I post this one:
Gold: Manipulation?
Richard Russell
Dow Theory Letters
April 11, 2003
Extracted from the 10 April 2003 issue of Richard Russell's Dow Theory Remarks
Gold -- I continue to believe that gold and most gold shares have recorded their lows. As
subscribers must know by now, in a gold bull market sometimes the metal leads the gold stocks
but this can reverse, at which time we will see the stocks leading the metal.
This is one of those times when it seems the gold stocks have been leading the metal. Yesterday
I took it that a bottom was completed in HUI, and with yesterday's action HUI broke out above its
125 resistance.
Gold, the metal, has been "heavy" and seemingly reluctant to follow the lead of HUI. Today, as I
write this morning, the June Dollar Index is down .48 and yet June gold is down .80. Strange
action, and counter-intuitive. When the dollar is "cheaper" it obviously should take more dollars to
buy an ounce of gold.
But why ponder the peculiarities of the market? Manipulation? Who knows, the manipulation
arguments never seem to end. This is the way I see it. The clear breakout of June gold from its
downtrend will come if June gold can close above 330. As I write June gold is trading in the vicinity
of 325. Gold needs another five dollars to etch out a clear bullish trend.
Looking at the last five trading day in gold, however, I noticed one interesting phenomenon. On
each day gold's close was higher than its opening. I have always found this kind of action bullish,
and by the way this type of action can best be seen in candle-stick charts.
More follows for subscribers. . .
Richard Russell
Apr 11, 2003
Dow Theory Letters
© Copyright 2003 Dow Theory Letters, Inc
http://www.321gold.com/editorials/russell/russell041103.html
Gold: Manipulation?
Richard Russell
Dow Theory Letters
April 11, 2003
Extracted from the 10 April 2003 issue of Richard Russell's Dow Theory Remarks
Gold -- I continue to believe that gold and most gold shares have recorded their lows. As
subscribers must know by now, in a gold bull market sometimes the metal leads the gold stocks
but this can reverse, at which time we will see the stocks leading the metal.
This is one of those times when it seems the gold stocks have been leading the metal. Yesterday
I took it that a bottom was completed in HUI, and with yesterday's action HUI broke out above its
125 resistance.
Gold, the metal, has been "heavy" and seemingly reluctant to follow the lead of HUI. Today, as I
write this morning, the June Dollar Index is down .48 and yet June gold is down .80. Strange
action, and counter-intuitive. When the dollar is "cheaper" it obviously should take more dollars to
buy an ounce of gold.
But why ponder the peculiarities of the market? Manipulation? Who knows, the manipulation
arguments never seem to end. This is the way I see it. The clear breakout of June gold from its
downtrend will come if June gold can close above 330. As I write June gold is trading in the vicinity
of 325. Gold needs another five dollars to etch out a clear bullish trend.
Looking at the last five trading day in gold, however, I noticed one interesting phenomenon. On
each day gold's close was higher than its opening. I have always found this kind of action bullish,
and by the way this type of action can best be seen in candle-stick charts.
More follows for subscribers. . .
Richard Russell
Apr 11, 2003
Dow Theory Letters
© Copyright 2003 Dow Theory Letters, Inc
http://www.321gold.com/editorials/russell/russell041103.html