Richard Russell raised eyebrows Tuesday when a report surfaced the noted Dow Theorist is telling newsletter clients to buy SPDR Dow Jones Industrial Average ETF (NYSEArca: DIA) in an apparent reversal of his bearish stance.

“Yes, I know that this market is uncorrected during its long rise from the 2009 low, and I know that there are risks in buying an uncorrected advance that is becoming uncomfortably long in the tooth, but my suggestion is that my subscribers should take a chance … and take a position in the DIAs,” Russell said, according to a King World News report.

He advised newsletter subscribers to set a “mental stop loss” 8% below the purchase price to limit potential losses.

“By taking a position in the market, you’ll be casting yourself on the side of the optimists, and you’ll also be casting your vote on the side of Ben Bernanke and the Feds,” Russell said. “Besides, it’s fun to be able, for once, to place yourself on the cheerleaders side of the US markets, and it makes sense to be on the side of America’s Federal Reserve.”

The buy recommendation drew attention because in a separate King World News report last week Russell said he didn’t trust the rally as the Dow reached all-time highs. [Dow Industrials, Transports ETFs Hit Records]

“My explanation of this unprecedented situation is that the advance to new highs was a direct result of never-before-seen manipulation by the Federal Reserve,” he said in the earlier report. “But I doubt if the Fed will be able to engineer a coming new era of prosperity in America. Thus, it will be an example of where the stock market will not be predicting the nation’s economic future.”

SPDR Dow Jones Industrial Average ETF

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