An OEW Colleague of mine pointed me to the comment section of a post by Pugsma
http://pugsma.wordpress.com/2010/09/03/sept-3rd-2010-update-eod-bulls-are-back/#comments
One of the comments says this:
"yes the creater of the Hindenburg Omen just went Bullish on CNBC after hours on Friday Sept 3rd. He stated that the McClellan Oscillator now be strongly in the positive that a market crash is highly unlikely. As long as the McClellan stays positive, Mr Miekka said it was a good idea to play the long side of the trade. Interesting Mr Miekka said he had a trend change indicator go bullish on Tuesday Aug 31st and produce a 5-day Russel-2000 “Buy” signal. However, he did not act on it. Pitty, as the Russel-2000 is up aobut 8.4% since Tuesday. I guess Mr Miekka needs to follow my blog a little closer. I need to contact him about teaming up."
So, after 70 points of a rally and 4 days of positive breadth, Hindenburg can be ignored not based on its own parameters, but based on McClellan Oscillator.
I still do not understand if there is a hard set of rules to ditch Hindenburg, but, we have had enough fun with this thing, and I will try to refrain from mentioning it again -- not a promise, but I shall try :-)
S&P 500 – May 15, 2012
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Bottom Line: Long term trend is up. Mid-term trend is down. Short-term
trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is
Strong Decli...
1 year ago
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4 comments:
Maybe this from Jeffrey Saut - Raymond James will clear things up.
Accordingly, I began my discussion by stating that if one more person asked me about the Hindenburg Omen I was going to get sick. While it’s true under the simple interpretation of the indicator there have been two Omen signals in August, but it is also true that the success ratio of the indicator is spotty. Moreover, as stated in these missives, the Omen’s metric I have trouble with is the percentage of new 52-week highs and lows on the NYSE. Parsing August 16th’s New High/New Low list, as well as August 12th’s (the alleged other Omen signal), shows that the vast majority of “stocks” making new highs were interest rate sensitive closed-end funds, preferred stocks, or some other kind of fixed income product, which by my pencil are not stocks. Therefore I’ll say the same thing I have said for weeks, “I don’t think a Hindenburg Omen has been registered.” Still, with the stock market’s bête noire of September and October looming, retail investors appear comatose.
Bill
Thank you, Bill
The point about NYSE's components and fixed income stuff is excellent
one reason I use Mcclellan and Summation on the index mainly and use NYSE just as a look up point most times
I think Lowry uses all equity portion of NYSE for its breadth analysis but I am not sure
Hey I'm famous! ha
I think $NYAD is very telling here..it has served as a leading indicator. And it has been charging ahead.
Hope you have a nice weekend!
saleen899,
credit must be paid when credit is due ;-)
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