Online Stock Trading - UPDATE to the Hindenburg Omen sightings - the first Hindenburg Omen was mentioned on August 12 and since then the markets have dropped around 3% - although so far today (1 Sept.) they are up, with the DOW up 138 points at 10,152). The predictions around the Hindenburg Omen seem to vary from a wimplike 5% to 15 or 20%. A 5% drop to me doesn't seem like much and hardly worthy of an omen !
What is the Hindenburg Omen ?
The Zero Hedge website which was one of the first to mention the Hindenburg Omen, it appears that, unlike in 2009, the market's "downside potential is finally starting to be appreciated". So we will see - personally I expect the DOW to drop down to around 9700 before putting in a bottom. But as stock market guesses go that is pretty lame too.
So just what is the Hindenburg Omen anyway ?
Apparently the five factors required for the Hindenburg Omen on the stock market are in place.
It appears that this particular stock market configuration is an early warning of a crash, although it also appears that this signal is not always valid, i.e. it does not always lead to a crash.
However Jim Miekka, the mathematician who discovered it said it is now predicting a market meltdown in September and he is out of the market. He also says that although it is not guaranteed he will be "dancing close to the door".
For a full definition see Hindenburg Omen
Home : Stock Charts for Beginners