The Box
Richard Russell
- snippet
Dow Theory Letters
Sep 4, 2007
Extracted
from the Aug 31, 2007 edition of Richard's Remarks
Gold
I know a lot of my subscribers own gold in various forms including
gold shares. Below we see a chart of GLD, the gold ETF. The formation
is in what I call "the box."
The box I'm talking about has
support at 64 and resistance at 68. Today GLD is trading above
66. Somewhere ahead I expect gold to advance to the breakout
point, which is 69.
If GLD can hit 69, it's off
to the races. A huge accumulation pattern, a massive base, will
propel gold much higher. If GLD makes it to 69, it should be
quite a show.
Patience.
Energy
Q. "Russell, I
can't put all my money in the Dow (diamonds). Where else can
I go?"
A. OK, aside from an honest man, what's the rarest
thing in the world? It looks like it's going to be energy. With
the Chinese buying cars, and the Indians buying air conditioning,
there won't be enough energy available, not at today's prices.
The life-blood of the civilized world is energy. And XLE is a
direct way of participating. The ETF has consolidated since June,
and it turned bullish this month. I like XLE. I mean, if the
energy business doesn't do well, then what the heck will?
lots more follows for subscribers...
Aug 31, 2007
Richard Russell
website: Dow
Theory Letters
email: Dow Theory Letters
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