Hindenburg Omen Reached Again: Is a Stock Market Crash Imminent?
(Hindenburg Omen stock market crash story updated for end of recession call by NBER, September market rally)
NEW YORK ( TheStreet) -- Remember when the Hindenburg Omen seemed an almost-certain predictor of an impending stock market crash? It may seems like eons ago, or at least one ended-recession ago, but in fact, it was just August 13 -- notably, a Friday the 13th -- when the obscure technical indicator became more important than Federal Reserve commentary, GDP and housing data, and just about any of the regular trader means of prognosticating the future direction of the markets.
The Hindenburg Omen reared its ugly head of technical stock market crash signals three times between August 13 and the beginning of September.
At the time of the first Hindenburg Omen trigger, the blog Zero Hedge described the Hindenburg Omen as "Easily the most feared technical pattern in all of chartism (for the bullishly inclined). Those who know what it is, tend to have an atavistic reaction to its mere mention."Writing on RealMoney.com some weeks later, when the third Hindenburg Omen trigger was signaled, Rev Shark noted that there continued to be some statistical support for the indicator. "One month later, we have had a mean loss of 1.7% and have been positive just 41% of the time. So it isn't just a sensationalistic name. There has tended to be a pattern of weakness when the Omen is triggered," he said.
Vote Now on the Hindenburg Omen Recession Threat
| Is the Recession a Dead Issue?
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV