a "Melt Up" discussed in the online section of Barron's,
from Richard Russell publisher of the Dow Jones Letter.
"For now, however, the market's upside action demands attention, according to one of the most respected and venerable market technicians around, Richard Russell, publisher of the Dow Theory Letter.
In his note to daily subscribers Monday, Russell described the setting of new highs on the three main Dow averages -- Industrials, Transports and Utilities -- on April 20 and again on April 25 as "like a clap of thunder."
and continues
"Over the near term and into the summer, world markets look overbought and subject to a correction, Russell continues.
"That would present a most interesting opportunity. The investing public is already skeptical. My guess is that any correction between now and the end of summer would generate a surprising, even shocking, amount of bearishness.
"Any correction should halt at or well above the 200-day moving average. After that, I expect the 'message of the Dow' to express itself. The result could be a rise of major, even one of spectacular proportions among the U.S. and the stock markets of the world. In the meantime, sit tight, don't do anything stupid, and be patient," Russell concludes.
Always good advice, but never more so today. Greed may not be so good just now."
"My take on the above-described market action is that something very unusual is taking place," continues Russell. "The stock market has made a 'statement,' but I don't know how many investors were listening," says the analyst who made one of the great calls in stock-market history, pinpointing the low of great bear market of 1973-74.
"My take on the situation is that the stock market (and the Dow Theory) told us that an unprecedented world boom lies ahead. I don't know what's behind this coming boom. It probably has to do with unbridled asset inflation," he says.
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