Let me get that straight — Richard Russell says we’re still in the bull market? And all sorts of low flying pundits are saying buy buy now before it’s too late?

Dear and esteemed readers see last week’s letter on never being in a hurry to do something stupid. The market is now in its 4th month of a sideways trend, and in its 7th month of a downtrend. It’s like a punch drunk fighter who keeps getting up and running into another kangaroo punch from whatever news is out there. Today subprime. Tomorrow earnings. Next bad weather in Iraq. Or news that Paris Hilton has found a new underware supplier.

Meanwhile OIL works its way higher. A buy gap appears from a small trading range. Up and up she goes, and where she stops nobody knows. The Basing Point is now the March low.

We would certainly have a stop here in gold — using the April low as the basing point.

We would not be surprised to see some extended sideways action here.

The CRB — a sort of basis for the DBA looks to be making buy gaps here to us.

Meanwhile, back at the ranch the dollar might be setting up a triangle. We think it’s still down long term with trading methods dominant at the moment. Down and down she goes, and where she stops no one knows.

Except Dick Cheney.