Liz Moyer from Forbes Uptick
The Hindenburg Omen, named after the airship that exploded as it was docking in New Jersey in 1937, has preceded every crash since 1987, but it has also popped up plenty of times without any subsequent market decline. It resurfaced in mid-August and became popular fodder for various trading oriented blogs. It was triggered by two important statistical events. One, NYSE highs and lows both exceeded 2.5% — stocks reaching 52-week highs were 2.9% of stocks traded at the Big Board, while stocks hitting 52-week lows were 2.6%. And two, a rising 10-week moving average for the NYSE compared to a negative indicator that shows market fluctuations (the McClellan Oscillator).
The trends had to be reconfirmed, and they were last week.
Plus, she has some other things to say about Federal Reserve Chairman Ben Bernanke, the Financial Crisis, and the Financial Crisis Inquiry Commission from this past Thursday.
So which is it, now? Did the Federal Reserve watch helplessly as Lehman failed because, as its officials have repeatedly asserted, they had no legal authority to stop it? Or had they already made up their minds that any intervention was useless? Seems like a little of both.
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