SHOOT: It's a sure fire signal that a crash is coming. Look out for one in the next few weeks.
So what is a Hindenburg Omen? It is the alignment of several technical factors that measure the underlying condition of the stock market — specifically the NYSE — such that the probability that a stock market crash occurs is higher than normal , and the probability of a severe decline is quite high. This Omen has appeared before all of the stock market crashes, or panic events, of the past 22 years. All of them. No panic sell-off occurred over the past 22 years without the presence of a Hindenburg Omen. Another way of looking at it is, without a confirmed Hindenburg Omen, we are pretty safe . But we have one as of June 16th, 2008. Our research noted that plunges can occur as soon as the next day (which is occurring now), or as far into the future as four months. In either case, the warning is useful. |
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