You may need to hideout for a while if a report making the rounds on trading floors turns out to be true.
Dow theory newsletter writer and chart legend Richard Russell says current gains are nothing more than a bounce in a great bear market.
And he’s calling for the Dow to fall back another 3,000 points.
“I see the Dow as the heavy side of the see-saw, and the heavy side of the see-saw having tested the horizontal (Dow 10,725) and having failed to climb above it, is now heading down to the level from which the whole bear market rally began.” writes Russell.
Before you say, ‘that’s crazy’ – it’s worth noting that Russell has been writing his newsletter since the late 1950’s. And he’s been right a number of times.
Although Tim Seymour, Pete Najarian and Joe Terranova just can’t get on board, Guy Adami thinks Russell could be onto something.
I don’t think it’s going that low, Adami says, but there are a lot of market pros who agree with Russell -- at least in part -- that the Dow is about to make a plunge.
In other words, Russell’s prediction might not be as ‘out there’ as it sounds.