Wednesday

6th Hindenburg Omen 2010

2 Comments September 1, 2010 – 10:22 am |   | Permalink |  Print This Post |

Markets triggered another Hindenburg Omen on 31st August - that is the 6th one so far. The fact that CNBC and Yahoo Finance have Hindenburg Omens in their headlines and technical traders drawing a clear line in the sand with abated breaths (S&P 1040) makes us concern at shorting the current rally - the Dow is now 10112 pre-open. Up 1%. Not a bad move pre open - a 1 % handicap before tee off is a good trade. BUT, as we said, when the world stops and watch expectantly for a crash, it seldom occurs. Real crashes occur usually after a rally. Call it a clean up of weak bears, shaking off the shorts. So if you plan on shorting this market today, do it carefully and with stops. We suspect a quick (about a week or so) huge rally, followed by a crash. Obviously there is always 2 sides to a coin - one could easily come up with a competing conspiracy theory such as the one we proposed above to support a crash. We do not like the odds, and either way we have @#$&loads of shorts in India! India’s NIFTY is giving us a headache! See you in the battlefield…