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.
