Obnoxy Knox and the Hilsenrath Omen

Confounded Interest ^ | 06/19/2013 | Anthony B. Sanders

[whitedog57]

Amanda Knox (aka, “Foxy Knoxy”) is back in the news as the Italian Supreme Court explains why they trying her murder case … again. Apparently, the original “theory” that someone died in an exotic sex game is the one that will be pursued. No double jeopardy in Italy, I guess. So, look for months and months of more “Obnoxy Knoxy” in the news.

Another celebrity in the news (constantly) is the Wall Street Journal’s Jon Hilsenrath. Here is Hilsenrath on The Fed’s taper. In a nutshell, Hilsenrath writes that Fed officials “are likely to signal” they’re on track to pull back in their June meeting.

Perhaps we should rename the Hindenburg Omen* as the Hilsenrath Omen. The Hilsenrath Omen hit red in October 2007 and is flashing red now.

So if the Hilsenrath Omen fortold a crash in the stock market AND massive Fed intervention, what does the Hilsenrath Omen flashing red indicate? A stock market crash? Perhaps. MORE Fed intervention? Likely, but that is not what Hilsenrath is predicting.

Here is the Standard and Poor’s 500 index against The Fed Funds Target rate. IF the Hilsenrath Omen is correct, we will see no curtailment of monetary stimulus.

Hopefully, Bernanke will end the speculation about what The Fed will do.

* The Hindenburg Omen is a combination of technical signals that together forecast the likelihood of a stock market crash. The technical inputs are the 10 Week Simple Moving Average, New 52 week highs on the NYSE, New 52 Week lows on the NYSE, and the McClellan Oscillator.

If, on the same day, the 10 Week Moving Average is rising, New Highs are greater than 2.2% of total issues traded, New Lows are greater than 2.2% of total issues traded, and the McClellan Oscillator is negative, then a Hindenburg Signal is indicated by a yellow circle.

Two such signals within a 36-day period is considered a Hindenburg Omen and is indicated by a red diamond. The Hindenburg Omen portends a serious decline within the next 40 days.

[whitedog57]

Pray the Hindenburg Omen is BS. Otherwise, The Fed will never go way.

[TheRhinelander]

Notice that Amanda Knox and Tom Cruise have never been seen in the same room together.

Just saying...

[Bigg Red]

...Amanda Knox and Tom Cruise have never been seen in the same room together.

***
Hmmmm....

[RobertClark]

Pray the Hindenburg Omen is BS. Otherwise, The Fed will never go way.

We've seen indicators a couple of times over the past 14 months. The problem, now, with traditional market analysis is that it can no longer be trusted. The Fed's monthly dump and the Treasury's market obligations have skewed all measures to an extent that no traditional analysis can be viewed as credible. The Fed broke the market - basically. Unless we are one of the very few (ahem, Goldman Sachs) that know where the Fed is pumping, no logical analysis can lead the way.