THE HINDENBURG OMEN!

For those of you who have never heard of the Hindenburg Omen it is named after the German Hindenburg which crashed and burned in New Jersey in 1937.

However for stock market players it has an entirely different meaning. The signal does not come often and is far from perfect but it is something we should pay attention to. Here is a good explanation of how it works. The signal was triggered 3 times last week so it seems to be occurring in clusters. When we see it in clusters it can be ominous. Here is at least one person's interpretation of what may happen this week and if this works out, Santa is leaving us with a big sack of coals.

As of this post, stock futures were trading lower along with the Euro as Asia sells off. As of 10pm EST Sunday night, no sign of any major unraveling of stock futures but as always we will watch the Euro as markets continue to trade tick for tick with the Euro. If we think back to 1987 that crash was triggered by a massive sell off in the dollar. This time around its a massive sell off in the Euro that will perhaps be the trigger mechanism. Or this could be just a lot of end of year noise showing up as we continue in the push and pull world we've been in since August.. Still i think we need to pay attention to this.