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To: austrieconomist who wrote (17113)	8/19/2003 1:27:28 AM
From: Proud Deplorable	Respond to of 39344

"As I write the S&P is up 400 points and the Dow is up over 40. If these numbers hold, then the Dow will have finally climbed and closed above its June 17 closing high of 9323.02 with the Transports confirming and at a new closing high. Normally, these "simultaneous upside penetrations" would call for higher prices. But with Buying Power at a five-month low, rather than predict, I'd rather just wait and see." "CONCLUSION: A very fascinating situation here. Dow and the Transports rallied to confirmed new highs, Dow at a 14 month high. But the background is less exciting. Volume was low on the breakout. Insiders have been selling heavily (see story in the WSJ today). New highs are lagging, and Lowry's Buying Power is near a five-month low. VIX today closed under 20 at the "too much complacency" level. However, the McClellan, after being in negative territory for 9 weeks, has turned positive and "'should" stay positive for a while. The weakish action of the various indicators may be suggesting that this rally won't go very far, but that again is just a guess. Just a very strange situation, but I have to give precedence to price, and that means the action of the D-J Averages. Those who bought the Diamonds and Spyders need to be alert -- place actual or mental stop losses under your stocks. I'd put 'em close like 92.99 for the DIA and 98.99 for the SPY. If they hit the stops, so what -- we tried. Tomorrow's another day, and I'm ready -- Russell" dowtheoryletters.com

To: austrieconomist who wrote (17113)	8/19/2003 1:39:39 AM
From: Proud Deplorable	Respond to of 39344

Aussie Gold ETF also from Russell: "The World Gold Council is going to make it a lot easier for people to buy gold. They're applying for gold ETFs at the NYSE, and exchanges in Tokyo, Johannesburg, Toronto, Hong Kong, and Singapore. Australia is already in action; Melbourne-based Gold Bullion Ltd. has become the world's first listed open gold-backed fund when it went public at the end of March. So far, 128,000 ounces of gold have been sold through the Melbourne Exchange. Each gold bullion trust share sells for one-tenth the price of an ounce of gold. The cost of buying a share is 0.01 percent. On the NYSE, the World Gold Council originally appointed the Bank of New York to work on listing its Equity Gold Trust. An argument ensued, and the Council switched to UBS, and the two are now involved in a legal argument. In the Russell opinion, within a year gold will be traded on most of the stock exchanges of the world, via the new ETFs. Each share of gold sold will be back by an actual ounce of gold, so it's important to realize that this will not be a futures or a derivative operation. In other words, purchases of gold ETFs will actually remove physical gold from the market. " dowtheoryletters.com