Monday, November 23, 2015

Richard Russell RIP

Richard Russell, publisher of Dow Theory Letters since 1958, has died. He was 91.

He died Nov. 21 at his home in La Jolla, California, his family said in a message to subscribers on the publication’s website. He had entered a hospital a week earlier and was diagnosed with blood clots in his leg and lungs “and other untreatable ailments,” his family said.

In his last column, according to Bloomberg, published on Nov. 16, Russell wrote: “I read 10 newspapers a day, but the news is getting increasingly difficult to digest down to something understandable, and the vast array of news sources becomes more and more complex. I can only imagine what the newspapers will look like in 10 years.”

“I’ve spent two-thirds of my life studying and writing about the markets,” Russell wrote on his website. “And I’d say that without a shadow of a doubt the material which has served me best are the books and papers written by the great Dow Theorists -- Charles H. Dow, William P. Hamilton, Robert Rhea and E. George Schaefer.”

In 1958, Russell began writing down his market observations as the Dow Theory Letters and sending mimeographed copies to friends. A bullish article published by Barron’s brought hundreds of new subscribers, who paid $30 a year for Russell’s biweekly commentary. The number of subscribers was estimated at 7,500 in 2002.

The latest public comment from Russell on his website is his commentary of November 11, which is in line with my thinking:
Market analysis has now become central bank analysis. All the old methods of analyzing markets have given way to deciphering what the Fed or ECB will do next.
I've talked about the pattern of the Dow Jones Averages ever since 1958. Based on the action of the two averages now, I'd say that the market is headed higher. This, despite all the talk of bearish possibilities from China and Russia and the tragedy out of Syria.
The Transports have formed a well defined bottom pattern and have broken out to the upside. The Industrials appear to have formed a complex bottom and have confirmed the Transports. Thus, based on the pattern of the Industrials and the Transports, I conclude that the market has turned bullish and should go higher over the near term.

I look at markets much more in terms of the Fed analysis then Russell did, but s a technician, he was among the best and really had a sense for trends.

Russell’s survivors include his former wives, Faye, Paula and Connie; children Daria, Nicole, Betsy, Ryan and Lauren; and a sister, Kate..


1 comment:

  1. Sad news, I haven't read Russell in years, but I grew up reading him, and always found him interesting and insightful.