Excerpts From
Granville FAX
Sept. 20, 2005
:
The Dow was up 20
just before FED announced 11th rise in rates. Dow closed down
76.11 at the 10481.52 level as it broke support at
10,520.00.
Transports fell
-8.30, breaking to a new low.
179 stock highs &
86 new lows, the highest number since April 28.
The True CLX fell 9
to -344, a new low.
The Early Warning CLX
fell 4 to -339, 3 away from the low.
Conclusion: Now
we are ready for a new leg down in the 2005 bear
market.
Joseph
Granville
From: Kennedy
Gammage [mailto:kgammage@xxxxxxxxxxxxx]
Sent: Tuesday, September 20, 2005 7:01
PM
To: Mr. Kennedy
Gammage
Subject: Tuesday,
9/20 Hindenburg Omen Crash Signal
Per the Wall Street Journal Online statistics
for Tuesday, 9/20, we have a Hindenburg Omen Crash Signal.
We have 78 New Lows (versus 167 New Highs) which, divided by the total number
of NYSE issues traded today, 3442, and the result multiplied by 100, we get
2.266. That is greater than Jim
Miekka's number for a Hindenburg Omen, 2.2, and implies the strong likelihood
of a major market decline within the next few days or weeks. Remember that
multiple signals are by no means unusual -- I remember once having three in a
week and a half. If no major decline has materialized within 30 days after the
last Omen occurrence, the signal can be considered void.
Based on its
very good (albeit admittedly NOT perfect) track record in the past, I strongly
suggest that protective action be taken. On our mutual fund switch Hotlines,
we have suggested 100% positions in the SHORT Rydex or ProFunds
funds.