tock market technical analysis pattern called the “Hindenburg Omen”. 

The Hindenburg Omen is named after the 1937 German airship disaster [photo top right] that occurred at the United States Lakehurst Naval Air Station and was developed by a blind and secretive American physics mathematician named Jim Miekka who writes a highly regarded, but little known, stock market analysis letter called the Sudbury Bull & Bear.

The five criteria of the Hindenburg Omen are:

1. That the daily number of NYSE (New York Stock Exchange) new 52 Week Highs and the daily number of new 52 Week Lows must both be greater than 2.2 percent of total NYSE issues traded that day.

2. That the smaller of these numbers is greater than or equal to 69 (68.772 is 2.2% of 3126). This is not a rule but more like a checksum. This condition is a function of the 2.2% of the total issues.

3. That the NYSE 10 Week moving average is rising.

4. That the McClellan Oscillator is negative on that same day.

5. That new 52 Week Highs cannot be more than twice the new 52 Week Lows (however it is fine for new 52 Week Lows to be more than double new 52 Week Highs). This condition is absolutely mandatory.

The first alarm that the Hindenburg Omen had occurred was raised by another US market investor newsletter called Zero Hedge who on August 12^th wrote:

“Easily the most feared technical pattern in all of chartism is the dreaded Hindenburg Omen. Those who know what it is, tend to have an atavistic reaction to its mere mention. Those who do not, can catch up on its implications courtesy of Wikipedia, but in a nutshell: "The Hindenburg Omen is a technical analysis that attempts to predict a forthcoming stock market crash.”

Interesting to note is that when Miekka was informed by the Wall Street Journal on August 14^th that his dreaded Hindenburg Omen had been activated he was not aware of it, but after plugging in the data about the US markets into his model was “taken by surprise” when he saw it was true and warned of a September US stock market “meltdown”. 

As news spread around the World that the Hindenburg Omen had been activated fear began taking hold and markets began to crumble, a situation made even worse after top British investor David Buik of BGC Partners, like Zero Hedge had done the day before, warned in the Daily Telegraph that this omen is “easily the most feared technical pattern in all of chartism”.

Adding to the fears of a US market crash of unprecedented proportions, and that will carry the rest of the World down with it, was a warning issued by Dr. Laurence J. Kotlikoff, the top professor of economics at Boston University, that the United States is completely bankrupt and the news of this fact is being kept from the American people by their elite leaders, and as we can, in part, read:

“Last month, the International Monetary Fund released its annual review of U.S. economic policy. Its summary contained these bland words about U.S. fiscal policy: “Directors welcomed the authorities’ commitment to fiscal stabilization, but noted that a larger than budgeted adjustment would be required to stabilize debt-to-GDP.”

But delve deeper, and you will find that the IMF has effectively pronounced the U.S. bankrupt. Section 6 of the July 2010 Selected Issues Paper says: “The U.S. fiscal gap associated with today’s federal fiscal policy is huge for plausible discount rates.” It adds that “closing the fiscal gap requires a permanent annual fiscal adjustment equal to about 14 percent of U.S. GDP.”

Unfortunately for the United States, and as pointed out in a recent New York Times article on how severe their Great Recession is becoming, the tax revenue needed to close this 14% “gap” does not exist as America is currently experiencing its “steepest and longest decline in tax collections on record.”

A major US gold investor newsletter called Gold Seek further warned that “never in US history has a recession struck after several extended months of emergency ultra-low interest rates” and that the US Federal Deposit Insurance Corp (FDIC) has recently warned that the bank failures are nowhere finished as they expect at least 1,000 more American banks to fail before the year is out.

Even worse for the American people are the reports this past week showing that their once vaunted social safety net system called the Social Security System has gone into the red for the first time in its history.

The response to all of these dire conditions facing the American people by their elite leadership class led by President Obama can only be termed as “shocking”, and as best summed up by the influential British journalist Nile Gardiner writing in his Telegraph article titled “The Obama presidency increasingly resembles a modern-day Ancien Régime: extravagant and out of touch with the American people” wherein, in part, he says:

“What the great French historian Alexis de Tocqueville would make of today’s Obama administration were he alive today is anyone’s guess. But I would wager that the author of L’Ancien Régime and Democracy in America would be less than impressed with the extravagance and arrogance on display among the White House elites that rule America as though they had been handed some divine right to govern with impunity.

It is the kind of impunity that has been highlighted on the world stage this week by Michelle Obama’s hugely costly trip to Spain, which has prompted a New York Post columnist Andrea Tantaros to dub the First Lady a contemporary Marie Antoinette. As The Telegraph reports, while the Obamas are covering their own vacation expenses such as accommodation, the trip may cost US taxpayers as much as $375,000 in terms of secret service security and flight costs on Air Force Two.

The timing of this lavish European vacation could not have come at a worse moment, when unemployment in America stands at 10 percent, and large numbers of Americans are fighting to survive financially in the wake of the global economic downturn. It sends a message of indifference, even contempt, for the millions of Americans who are struggling just to feed their families on a daily basis and pay the mortgage, while the size of the national debt balloons to Greek-style proportions.

While the liberal-dominated US mainstream media have largely ignored the story, it is all over the blogosphere and talk radio, and will undoubtedly add to the President’s free falling poll ratings. As much as the media establishment turn a blind eye to stories like this, which are major news in the international media, the American public is increasingly turning to alternative news sources, including the British press, which has a far less deferential approach towards the White House.

The First Lady’s ill-conceived trip to Marbella and the complete disregard for public opinion and concerns over excessive government spending is symbolic of a far wider problem with the Obama presidency – the overarching disdain for the principles of limited government, individual liberty and free enterprise that have built the United States over the course of nearly two and a half centuries into the most powerful and free nation on earth.

It is epitomised above all by the President’s relentless drive towards big government against the will of the American people, and the dramatic increases in government spending and borrowing, which threaten to leave the US hugely in debt for generations. It is also showcased by Barack Obama’s drive towards a socialised health care system, which, as I’ve noted before, is “a thinly disguised vanity project for a president who is committed to transforming the United States from the world’s most successful large-scale free enterprise economy, to a highly interventionist society with a massive role for centralized government.”

To what this “massive centralized government” Obama and America’s elite want for the United States we can glimpse from a recent speech given by former US diplomat and Presidential candidate Alan Keyes who warned:

“What did it mean to be a slave? It meant that you actually had guaranteed shelter, guaranteed clothing. Your master guaranteed your food, your clothing, your shelter and a job. Sounds interesting doesn't it? That's exactly what the Obama faction and the leftists and the socialists and the so-called 'liberals' want to pretend is what all Americans should aspire to.”

To the more detailed and historical reasons for Obama and America’s elite classes destruction of the United States we had detailed in our July 23^rd report “Shock World Court Ruling Warned Will Destroy Obama, America”, and which this Hindenburg Omen provides to those who listen further proof of the apocalyptic times we all have now entered into. 

© August 15, 2010 EU and US all rights reserved. Permission to use this report in its entirety is granted under the condition it is linked back to its original source at WhatDoesItMean.Com.

[Ed. Note: Western governments and their intelligence services actively campaign against the information found in these reports so as not to alarm their citizens about the many catastrophic Earth changes and events to come, a stance that the Sisters of Sorcha Faal strongly disagrees with in believing that it is every human beings right to know the truth.  Due to our missions conflicts with that of those governments, the responses of their ‘agents’ against us has been a longstanding misinformation/misdirection campaign designed to discredit and which is addressed in the report “Who Is Sorcha Faal?”.]

www.whatdoesitmean.com/index1398.htm

August 15, 2010