Richard Russell - Get Ready For Massive QE3 & Epic Inflation

Today the Godfather of newsletter writers, Richard Russell, wrote a special report stating that a massive QE3 is now headed our way, along with epic inflation.  He also covered gold.  Here is what Russell had to say: “There's nowhere to hide. Governments will opt for their favorite remedy -- inflation. Inflate away the debt. Problem -- a little QE3 won't help, if the Fed really wants to jazz up the economy, it will have to be a massive QE3.” 

Richard Russell continues:

“The only investment secret is what comes next? 

Next -- it's gold's turn to move to the forefront.  If gold starts to move, and it is moving a bit, then the beaten down gold mining stocks should start heading North.  The two ETFs that I like are shown below.

Below, we see three years of GDX, the ETF for the senior gold mining shares.  The three year chart shows GDX's very extended recent correction.

 

Below, here's GDX on a daily one-year chart. It's just crossing above its 50-day moving average.  MACD is trending up, as is the RSI.

 

A point & figure chart of GDX.  A first bullish breakout would be a rally to 47.  A clear bullish signal would be a rise to the 49 box.

Below, the ETF of the junior gold mining stocks -- shown here climbing above its 50-day MA.

Should you buy a sampling of GDX and GDXJ here while they are dirt cheap?  Or should you wait for a first actual buy signal?  That's up to you and your courage. 

Late Notes -- We're facing a world slowdown.  Even China, our ‘savior’ is slowing down quarter after quarter. We're nearing the fiscal cliff.  US exports are slowing down.  And unemployment in the US is still over 8%.  There's only one answer that I see, and it's combined money creation on the part of the Fed and the European Central Bank.  It's coming-- big time along with massive inflation.”

Source: http://kingworldnews.com/kingworldnews/KWN_DailyWeb/Entries/2012/8/15_Richard_Russell_-_Get_Ready_For_Massive_QE3_%26_Epic_Inflation.html