Tuesday, August 24, 2010

Full Hindenburg Omen Tripped

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A stock market Hindenburg Event occurred again on Friday August 20th, after appearing once before on Thursday August 12th.  Two Hindenburg Events in a single 36-day period is a full Hindenburg Omen, which portends a stock market "crash and burn".  The creator of the Hindenburg Omen, Jim Miekka, a blind mathematician, has exited the market.

I closed most of my long positions today.  Additionally, my large position in oil has become untenable due to events (and non-events) in the Mideast, and I reduced it last week.  I have now hedged it with additional equity shorts and an increased gold position (GLD).


Any rational leader of the free world would have bombed the Bushehr reactor.  By not bombing, we have confirmed to the world -- and the Iranians -- that we will do nothing to stop a nuclear-armed Caliphate from appearing.  In the near team this means peace, and a decline in oil prices.  (The only thing holding oil above $50 a barrel is world political/war uncertainty.)   In the 5-15 year time frame, this means a new Holocaust.  I wouldn't want to be a Sunni or a Wahhabi either.  The House of Saud is in trouble.

Our policy toward Iran reminds me of our policy toward Nazi Germany in the late 1930's.

I think WWII would have played out a little differently if Germany had had nuclear weapons and intercontinental ballistic missiles.

Barack Hussein Obama announces Middle East "Peace in Our Time"
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