Investment

» BoltonCT - Waiting for a confirmed Hindenberg Omen

U.S. stocks rose the most in a week yesterday as retailer stocks rallied on planted rumors of better-than-estimated earnings. Yet economists said today before the actual report that sales at U.S. retailers probably fell in April as the biggest housing recession in a quarter century and record gasoline prices prompted consumers to put off buying autos and appliances. Wall Street makes its money on volatility not truth. That is why as soon a reliable indicator is found they try to break it.

At the present moment US market futures are declining indicating the market will likely start lower.

Stocks in Japan and Hong Kong rallied more than 1.5%, but China stocks sank 1.8% after a major earthquake there. European stocks started fractionally higher but sank and are fractionally lower this morning. London is presently down 0.92%.

http://www.themoneyblogs.com/amateurinve...

May 21 is the day by which the unconfirmed Hindenberg Omen Signal of Tuesday April 15th needs confirmation.

Presently the New Spiral indicator still says cherry pick into the market while the New MACD indicator has yet to confirm a market bottom. Those using the old MACD are still on the sidelines and those using the old Spiral (Parabolic SAR) are being whipsawed by Wall Street volatility and are currently out of the market as well.

Short covering is likely what has caused this rally as the community had gotten quite negative last month that many shorts have now covered giving the market its recent strength.

While the world bubble has burst there is unprecedented FED cash everywhere which is igniting inflation and that will offset apparent losses but not inflation adjusted losses. This cash will likely result in new moral hazards and Japan's type of malaise that could last a decade.

-- posted by BoltonCT