Cleaning Out the Gold Market

"Ain't nobody clean. Be nice to get clean, though."
--Trip (Glory)

Richard Russell discusses the likelihood of one more 'clean out' in gold. We seem to be getting it now. Clean outs shake off the weak hands before bullish moves higher.

He recalls the big move down in gold prior to 1979-1980 surge.

Russell also asserts that the bear market in US stocks began in 2007. Many like to say it began with the tech bubble pop of 2000-2001. Russell the technician thinks otherwise. After all, the Dow and SPX made marginal new highs in 2007 before the credit crisis.

The implication is that cycle theorists proclaiming that the bear market is over because it has exceeded its average its 10-15 year time period are premature, as their frame of reference is mistaken.

The bear is only 5 years old by RR's measure and still hungry.

position in gold, SPX