Sunday, August 15, 2010

Is A Major Market Crash Just Ahead?

Daily Finance details theories involving a stock market crash ahead:
Wall Street is whispering about the 'Hindenburg Omen'. It's an ominously named technical indicator that is supposed to signal an upcoming stock market crash. "Its creator, a blind mathematician named Jim Miekka, said his indicator is now predicting a market meltdown in September," reports The Wall Street Journal.
The S&P 500 completed on Friday the biggest three-day decline since July 1. The wobbly stock market has investors worried and searching for clues on the market's direction.
Some traders are warning clients about the indicator, and some blogs are all the doom and gloom. The indicator may suggest "a savage equity downturn is imminent," Bloomberg quotes Albert Edwards, a London-based strategist at Societe Generale SA, as saying.
But the Journal cites Andrew Brenner, managing director at Guggenheim Securities, telling his clients: "Personally, it sounds like [people] are starting their weekend drinking early."
For the full story see Daily Finance.

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