Will the 'Hindenburg Omen' Bring a Crash Soon to the Markets?

The Hindenburg crashed and burned because it was full of hydrogen and the present administration is full of gas like June housing sales statistics that swell and shrink to distort the newest statistics, so don't bet more than you can afford to lose!

Ohh, what's really going to bake your noodle later on is, would you still have broken it if I hadn't said anything?

In reality more investors who really want to sell compared to the number of investors who really want to buy will soon bring a crash to the markets. But, as I've said before, any excuse will do to justify a major sell-off for an overbought market. However, the most fundamental reason for a major decline in stock prices is the stocks were just overvalued to begin with and they need to overreact on the downside. http://sites.google.com/site/jpetervanschaik/

Omens do not predict economies, and by the way, I predicted the fall of 2008 in late November of 07. I also said that gold would peak at 1200 when it was trading at 1050.
It did. It will now continue to rise to peak again at around 1400, by years end. I said that the market would have a large correction not long ago on one of Libor's blogs. It's doing it, but it is not going to be "crash". Call it an abyss or black hole, but that is not there, it is simply a correction that should bottom around 9200. I said the housing market was going to "blow up"way before the "implosion" and took steps to do CYA, which includes staying away from the stock market. I am simply old and cautious and do not advocate that move for younger investors as they have a larger time factor and as such, can be more adventurous.
You do not need a crystal ball as common sense and a macro view of world events can be compiled into a pretty fair feeling for at least the short term future.
I expect that we are going to see inflation and deflation occupy the same time frame. I wait to see how the Fed handles this one. Our government uses two standards of measurement and by separating this little problem into "core" and "other" tends to work fairly well, as long as there is a reasonable balance. Given the agriculture problems that exist worldwide, and ever expanding populations, the food end is going to rise, probably quite dramatically. Given that near all on this earth are in some kind of recession, price hikes in this area are not going to go unnoticed.
We are far from solving even the initial problems that set the recession wheels in motion, in fact I doubt that we are much further ahead than two years ago. If all reliance is on government to turn things around, plan on it taking years. The only entities with the where with all are private. The banking sector remains cautious (and greedy) and the manufacturing end is sitting on a mountain of cash. Considering that our banks can borrow at rates that have not been this low in memory does not equate well with what they charge for consumer credit. They brought us into this hole in the first place and continue to do all that they can to keep it here. This policy reflects their intelligence which I deem to be only slightly above a moron. This is a poor business plan that will only result in more public outrage, especially if the suits against the Fed's private lending documents are upheld and become public. For the banks it is a time for leadership - in fair lending. As I doubt that this will happen I will enter another prediction. I predict that there will major changes in Congress comes November and the new blood will by enact the most stringent regulations on banking since the 30's. All of the lobbyist's in D.C. will not be a match for an enraged public.

Sorry, but I don't base my investment decisions on omens. It seems like both major political parties are hellbent on taking the country down, if they can't get their own way. I saw the Democrats do it to Bush and now I'm seeing the Republicans trying to play down the recovery, to suit their own political interests, come November. Never in history, have the Independents held such power over an election, with the possible exception of 1992, when Ross Perot ran for President. Read, "The Rise and Fall of the Third Reich," if you want to see how dangerous a game, they are playing... The Fox News idiot is just trying to derail the recovery, because he cannot stand to see it occur, on President Obama's watch. He's got an awful surprise coming... His contorted rants cannot bend an economy which is improving! I'm fully invested and confident in a recovery, which is coming from the ground up. Niether major party has much to be proud of... The people of the United States have very much to be proud of. Don't vote on the basis of fear, vote your conscience! If the recovery occurs under President Obama, then so be it!

Doom and Gloom with enough bad expectations repeatedly becomes self fulfilling prophecy and let's hope that the big shiny truck in front of your home is your wife only having an affair with the plumber.

What Tom Taulli has written is pure b.s. and especialy poor financial writing. He starts the statement that the Hindenburg Omen has a 30% probability of being correct. Another way of saying this is the HO has a seventy percent probability of being wrong. Which is far worse than a coin flip. If you invest using an indicator that is wrong 70% of the time, you'd soon find yourself trying to write financial advice comments to put food on the table. Then, Taulli sums up his screed with this ridiculous statement: So, even if the Hindenburg is not full-proof, it is certainly more evidence of deterioration in the markets.
Taulli thinks that an improbable forecast is evidence of deterioration in the markets. He's an idiot. Investors should not listen to idiots.

Your readers may enjoy my just-out market satire piece based on the Hindenburg Omen:

http://seekingalpha.com/user/209979/instablog