 Our investors use a host of different technical market gauges, and one of them is the Hindenburg Omen. Joining us now to explain is Mark Holbert of the Holbert Financial Digest. So, Mark, very simply, what is the Hindenburg Omen? Unfortunately, there's no simple answer. It's basically an index or an indicator that traces back, as far as I can tell, about 50 years. It was created in the 1970s. And it really builds on an indicator that Norm Fausback of the Institute for Econometric Research had created called the High-Low-Logic Index. And that remains the core of the Hindenburg Omen. But what followers of that High-Low-Logic Index did was add a whole host of additional indicators above and beyond what Fausback had introduced and put it all together in a package which is called the Hindenburg Omen. And I think that history is important because a lot of times what people do is they'll add indicator upon indicator together to retroactively make it fit the data better. And I think that's what's happened here. In fact, when I interviewed Norm Fausback about the Hindenburg Omen, this is several years ago now, but he referred to that mishmash of indicators that are all put together in the Hindenburg Omen. He called it a big pasta dish. It's just a conglomeration of lots of different things, and he doesn't think it has as much statistical validity even in theory. And of course, that's even before we start talking about his track record, which is also very checkered. But what kind of market insights do we get from the Hindenburg Omen? Well, if you look at the core of the High-Low-Logic Index, the theory behind it, as explained by Fausback, and this is all the way back to the 70s, and it remains a good indicator, though again it has had notable failures. But the logic behind that indicator is this, that when you have a market that is healthy, you're going to have a high number of new 52-week highs, but a relatively low number of new 52-week lows. And when you take, when both of those are at a relatively high level, that suggests that there's a lot of churning and distribution in the market and is a sign of not health or sickness, as you might say, in the market itself. And so that's what the indicator does. It simply looks at the lesser of new 52-week highs and 52-week lows, and then takes that number and the percentage of total issues traded. And when it goes above, different people look at different thresholds. It could be either two or three or four percent. And they usually look at it on a moving average basis because there's a lot of noise in the data. But basically, they're just looking to see if, in a bull market, if there's a lot of new 52-week lows, that has to suggest that the market isn't doing that well. All right. But now it has been triggered a few times in recent days. So from that, I mean, what are the odds of some sort of correction or pullback coming in the market this summer? I would say those odds are no greater than they would have been if the Hindenburg Omen had not triggered. You may recall that if you were looking at this indicator, no reason that we should because it's triggered so many times in recent months, but it was triggered before this last bout of triggers, I think it triggered most recently in December of last year. And here we have one of the strongest starts of the new year. So no indicator, of course, is perfect all the time. So pointing out that it's had a failure isn't in and of itself a reason not to pay any attention. But there have been so many failures of it over the years that I don't think it's tracker or prediction about a bear market is any better than you would if you simply flip the coin. And then you add on top of that, the concerns just theoretically, as Norm Fosback told me a several years ago, is that when you start adding it sort of in an ad hoc fashion, all these indicators on top of each other to try to retroactively fit the historical record, then you really are just engaging in data mining and are not involved in a very serious enterprise of trying to predict the future. All right, Mark Holbert, we appreciate you breaking all this down for us. Thanks for joining us. It's my pleasure. Thank you. All right, I'm Scott Gam and you're watching The Street.