Hindenberg Omen (True or False?)

Tonight over dinner, there was talk over the signs and ominous signals and the potential crash in September 2010. Is this true or unfounded? It isn't September 2010 but it is definitely interesting to reflect on some history:

Crash of 1929:

Hindenberg Omen: Predicted the stock crash in 1987, the originator  James Miekkabecame an overnight success.

1. 2.2 percent or higher of  companies on the New York Stock Exchange had Highs

2. 2.2 percent or higher of  companies on the New York Stock Exchange had Lows

3. The Moving Average of the New York Stock Exchange must be rising

4. A negative McClellan Oscillator at the same time

5. The new yearly highs can’t be twice the amount of new yearly lows.

Friend and economist A. Gary Shilling believes either way we'll be heading into deflationary times.

2009 Video if the Swine Flu became an uncontrolled pandemic it would catalyze things faster ... but in the end we would still have deflation. But the Swine Flu of 2009 passed and we made it. Everything seemed to be recovering and quarter by quarter things seemed better. Then suddenly it stopped.

June 2010 Video: China, Europe, USA ...

We clearly are at a point where jobs, housing seems to be slowing down and we are sitting on a situation where "IF" something really bad happened, everything would stall. Throw in the Hindenberg Omen and you really wonder if the sky is falling.

Lately, an increasingly larger number of economists (the experts) now believe we will have deflation ( link to article).

What I believe is that we're having a shift in trends. There will always be growth industries although not in the usual areas. Mobile internet, green technologies, novel approaches to medicine, artificial intelligence ... these will pave the way to high growth areas. Of course, you'd have to reinvent yourself and get exposed to this but it isn't that hard. Let's say you're a producer, if you're shooting in 3D for quite sometime this was super hot (i.e. Avatar) or if you're a maker/designer of APPs ... that's also going to get you a pretty good pay.

Good luck out there ... and let's see if Hindenberg is right or wrong. Either way, the show must go on. Hang in there!