Wednesday, May 19, 2010

Sell it All, Risk of 'Major Crash': Dow Theory’s Russell

he author of the closely-watched Dow Theory Letters newsletter warned investors to get out of US stocks now in a report published Tuesday.

Richard Russell wrote that there is a risk of a “major crash” if the Dow Jones Industrial Average falls below the May 7 closing price of 10,380.43, according to several media reports.

"If I read the stock market correctly, it's telling me that there is a surprise ahead," Russell wrote. "And that surprise will be a reversal to the downside for the economy, plus a collection of other troubles ahead."

"Do your friends a favor. Tell them to “batten down the hatches” because there’s a hard rain coming," Russell warned. Read more

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