Richard Russell capitulates
An inveterate bear turns bullish
ANNANDALE, Va. (MarketWatch) -- Stop the presses! Richard Russell, editor of Dow Theory Letters, has turned "totally neutral on the stock market -- at least as to the secondary trend."
I nominate this for the understatement of the year award.
It actually represents a huge bullish turn for Russell, who has been almost exclusively bearish for six years now, especially given that he was making aggressively bearish noises as recently as the past couple of weeks.
What changed Russell's mind?
The first thing is the new all-time high in the (DJUA: news, chart, profile) Dow Jones Utility Average. According to Russell, "Normally, the Utility Average will hit its highs well before the final high in a bull market, although there have been times when the Utility Average topped out simultaneously with the bull market high."
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Ogilla! 6
Gilla!
"I further wrote that if the S&P touches 1230 cash, that would probably be enough to enter on a speculative basis, with a stop-loss at 1218. The S&P did hit 1230 -- the S&P closed yesterday at 1231.16.
The media picked this up, and the word went out that I had "turned bullish." They got it wrong. There's a difference between a speculative trade, and turning bullish on the big picture. I am not bullish on the big picture. But a good trade is a good trade. And they don't come along every day."
Ny kommentar från Russel
Så han är nu bearish men spekulativt/kortsiktigt bulle
En långsiktigt value investerare och ganska permabear har blivit en kortsiktigt bulletrader
"you cant cr*p like an elephant and sing like a bird as they say. "