JANUARY 03, 2012
With gold, silver, stocks and crude oil all posting strong gains, and continued worries about where the global economy is headed, the Godfather of newsletter writers, Richard Russell, had this to say in his latest commentary: “Lowry’s is one of the technical studies that I depend on in my appraisals of the stock market. Turning then to Lowry’s figures, what we see here is critically important. In early August, the Buying Power Index (demand) broke below the Selling Pressure Index (supply).”
Richard Russell continues:
“Even more important, Buying Power since last February has been in a sideways movement — but in late-July Buying Power suddenly broke down and embarked on a long down-sloping trend. At the same time, Selling Pressure was gliding down gently but it suddenly turned up in late July. What we see now is the two indices spreading apart which is extremely bearish — Selling pressure is steadily increasing while Buying Power is dropping like a stone.