Short
Term
The Hindenburg Omen, a signal developed by Jim Miekka,
has received a lot of publicity lately.
The signal has had some false positives, but it has also preceded every
major decline. The parameters
are:
NYSE new highs and new lows must both exceed 2.8% of
NYSE issues traded (currently
93).
The NYSE composite must be above its level of 50 trading
days earlier.
The McClellan Oscillator must be
negative.
When the above conditions have been met the signal is in
effect for 30
days.
On Friday all of the conditions were met. Even 10% trends (19 day EMA?s) of NYSE
new highs and new lows exceeded 93 (NYSE NH 148 and NYSE NL 102). The NYSE composite is 2 days off its all
time high.
If we have a follow up to the upside I would use it to
short
oil is also at 95-96 a
barrel
gold hit 810
Friday
and
money markets are not safe anymore as they contain
5-25% of bad quality mortgage
loans!!!
Citibank ceo is
out
etc,,,
Ben