Gold stocks ready to move, says Richard Russell

Famed stock market newsletter writer, Richard Russell, recently told readers of the his Dow Theory Letters that gold stocks are poised to make another bullish move.

The author of the longest-running financial newsletter reminded his readers that sector moves usually follow the leader(s) of the sector. In the case of gold stocks, Australian-based Newmont Mining slipped in a sizable move through its reverse head and shoulders formation Thursday, rising an impressive $1.98 move straight through the right shoulder.

A look at the MACD reveals a screaming buy as well, with the faster indicator crossing the slower indicator.

Russell‘s announcement dovetails just nicely with the coincidental bullish move in crude through its multi-month resistance of $82 per barrel.

Currency expert, Axel Merk, president of Merk Mutual Funds, says the Euro is oversold and under-loved at the 1.35 level. The second star has aligned for Russell.

Then there’s the dismal Treasury auction result last week. Bond yields have soared as the focus on the dollar moves center stage. Massive borrowing needs at Treasury are finally taking its toll on the debt market. And now the third star.

Fears in the Eurozone have been priced into the Euro/Dollar cross, says Merk. He anticipates a rally in the Euro, and conversely a sell-off in the Dollar.

Back to Russell. The octogenarian, plus some, has been at the game of money allocation for ever. His style is conservative and patient. He’s still sharp, vigilant and grounded for an elderly man, having been blessed with good health and the battle scars of the Great Depression still fresh in his mind. Russell never tells the market what it should do; he listens to what the market tells him, instead.

When equities were making new highs in 2000 and again in 2007, Russell was buying more gold. Russell isn’t a proclaimed gold bug and doesn’t have a Uncle Sam chip on his shoulder either; he’s a realist. He’s been around long enough to impart some sanity in an insane, corporate/government propaganda model world.

If you understand how Russell’s soul has been forged, and then try to square his sage advice with the advice of the agenda-driven, sophomoric analysis of the corporate/government minions tag team of today, you might dismiss the innate instincts which tell you its a good time to load up on gold and gold stocks before the next revaluation in the Dollar begins.

The gold market is treacherously volatile at times, but so are the waters below the deck of the Titanic. Preservation of capital, like one’s life, isn’t easy during an emergency. The U.S. Dollar will take its lumps one way or the other, either now or later.

The oil market, gold stocks and treasuries signal a revaluation shift approaches. And Richard Russell is just doing what he’s done for more than 50 years: warn investors ahead of time.