A few words about gold

Richard Russell
Dow Theory Letters snippet
Jun 1, 2009

Friday May 29, 2009 Gold -- Gold is now trading decisively above its resistance level of 960. The upside target now is the high around 1003. Again I want to remind subscribers that we don't trade in-and-out during a primary bull market. We stay with the rising trend and buy more during the sporadic corrections.

Many gold fans sold out months ago when gold broke below the 960 resistance level. Now with gold well above 960, these sellers are out of gold and don't know what to do.

Lesson -- you don't try to out-trade and out-smart a bull market. You ride on the back of the bull and add more on corrections.

Today's [Friday's] feature was another rise in gold. But this time the rise was 17 points and I have to wonder whether gold is ready to go parabolic. Gold has been in its corrective mode for many months and thus a lot of energy has been stored up in the yellow metal.

This is the end of the month -- will it be "sell in May and go away," or "June is busting out all over?"

I sense excitement coming up.

See you in June.