Recent Hindenburg Omens Signaled Caution, Now What? | Seeking Alpha

Recent Hindenburg Omens Signaled Caution, Now What? | Seeking Alpha



Chris Puplava has written another outstanding article about the stock market and the economy.  As you know, we experienced a 5% pullback in December which was an excellent buying opportunity.  I have made a handsome profit so far through buying UDOW and some oil stocks near the bottom.  Since I knew the economy was doing well, I was not afraid to buy stocks.



Chris mentioned several reasons for the stock market going higher in his article.  He believes like me that the economy is in good shape.  He cited the improving employment market and the Philly Fed six month states economic outlook as proof that we are nowhere near a recession.  The author also examined advance-decline lines and new highs/new lows historically at stock market tops.  If the new highs spike higher than the new lows, the bulls are in charge.  That is where we are in mid-December of 2014 with a bull rally going on.



However, Chris warned that all is not completely well.  You can still have a mini bear market while we are not in a recession, and August to October of 2011 is one example of this.  He also talked about how the monthly MACD line of the S&P 500 is sloping downward.  This usually precedes a large pullback, and there may be another decline on the way.  I plan to book profits on some of my stocks like UDOW this next week because I think the Christmas rally is just about over.