How to Trade: The Hindenburg Omen Stock Market Crash
(Article updated with information on market reaching a second Hindenburg Omen on Aug. 19.)
NEW YORK (TheStreet) -- If it feels as though you can't pull the trigger on a trade today without first consulting the Hindenburg Omen, you are not alone -- and TheStreet has help for you to avoid the stock market crash that, at this point, it may seem like the Hindenburg Omen all but guarantees.
The Hindenburg Omen is a somewhat obscure technical indicator that has suddenly become a market blog sensation. Last weekend, unlike the doomed German airship which crashed and burned (before providing a name for the bearish market signal) the Hindenburg Omen soared to become one of the most popular Google search terms. It's possible that only Federal Reserve chairman Ben Bernanke has more power to move the markets right now.
Now, according to Sentimentrader.com we had a second Hindenburg Omen trigger yesterday. Some technicians regard this as confirmation of the first reading and, therefore, a much more dire situation.
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