The Hindenburg Omen IS Scary, but So Are the Fundamentals


After tumbling below 10,000 yet again Wednesday morning, the Dow rebounded to close above that psychologically important level and was slightly higher early Thursday. Still, fear in the market is being expressed by the continued rally in Treasuries and widespread chatter about an ominous sounding technical indicator: The Hindenburg Omen.

The Hindenburg Omen has a roughly 25% accuracy rate in predicting big market upheaval since 1987, meaning it's far from infallible but isn't inconsequential either. The indicator's creator, mathematician Jim Miekka, compares the Hindenburg Omen to a funnel cloud that precedes a tornado in a recent interview with The WSJ. "It doesn't mean [the market's] going to crash, but it's a high probability," he said.

Complex and esoteric even in the world of technical indicators, the Hindenburg Omen is triggered when the following occurs, Zero Hedge reports:

* -- The daily number of NYSE new 52-week highs and the daily number of new 52-week lows must both be greater than 2.2% of total NYSE issues traded that day.
* -- The NYSE's 10-week moving average is rising.
* -- The McClellan Oscillator (a technical measure of "overbought" vs. "oversold" conditions) is negative on that same day.
* -- New 52-week highs cannot be more than twice the new 52-week lows. This condition is absolutely mandatory.

These criteria have been hit twice since Aug. 12, prompting Miekka to get out of the market entirely, The WSJ reports. Judging by the recent market action, many others are following suit -- or at least moving in the same direction.

a little green today as at now :

GDP 1.6%

PAR is absolutely crazy. Didn't even touched it. I thought DELL offer was accepted by PAR Board. Now what?

even 200 shares is good for USD1000!!!

Index green +50 points, and my portfolio is not good green. Yesterday the index was -10points, it shed more $$ out of my account than green +50!

I prepared some cash for C @ 3.50's. See it at 4.50$ in few months time.

Yes, I was wondering too. Why? System error? DOW +123 but still haven't contra off yesterday's negative. We need 300 points before can say its a micro-bull.

Aye, by the way of it, the micro-bull last as expected, 1 day late. Uncle Ben words is powderfull.. We should be seeing some more carry forward sentiment on Monday before slow sell and downwards on Thursday & Friday.

Look at LVS, never ending stop of BULL by itself.

Nobody listen to Ohbama becoz Uncle Ben is Jew. Jew control US of A. The rest are just puppets.

I'm long for HPQ, for at least 6 months. Looking forward for it hitting back $50-55

NYSE volume is fading.

indeed, they stayed on. It came earlier than I thought. The total P&L of 160 over points is lower than the 'LOSS' of 140 over points. How convenient. Totally not fair. Look at S and C. Performed poorly. Not to mention STEC.

Is the doomsday really coming soon? DOW played well and closed few pips over 10K

DOW back to green. Supports still hold at 10,000

umm.. why r u heppi? I thought u're BEARISH?

Red again. Dragged down by INTEL. Dunno what the BOD are thinking. Fresh after McAfee deal, now seeking Wireless business of Infineon For $1.4 Billion.

Now, shareholders dislike the idea and start throwing INTC down. From $20 now heading to $17, and it drag down DJIA with her.

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Added on September 1, 2010, 3:26 amforget to add CSCO also dragging the DOW down.

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Added on September 1, 2010, 4:16 amDow Jones 10,014.72 +4.99 (0.05%)
S&P 500 1,049.33 +0.41 (0.04%)
Nasdaq 2,114.03 -5.94 (-0.28%)

Scam closing??

This post has been edited by zamans98: Sep 1 2010, 04:16 AM

There will be - and always be upsides of the economy. Not until end 2011 or early 2012. The housing + employment numbers says it all

AMAZING!!

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Added on September 2, 2010, 12:51 amAMAZING! 230 points and yet unemployment data is not that good///

This post has been edited by zamans98: Sep 2 2010, 12:51 AM

Dow Jones 10,269.47 +254.75 (2.54%)
S&P 500 1,080.29 +30.96 (2.95%)
Nasdaq 2,176.84 +62.81 (2.97%)

One of the best performance of S&P in many months.

Fasting month. Sometimes stays awake up to 6am, sleep for 1 hour, to work at 8+ and back 4+. Hehehe.
C and S almost near to my entry price, target to sell partially before FRIDAY.

BULL on the way.........

aye, agreed. After the scandal, HPQ on downtrend. Best way forward is to rebuild the company. Let's DELL suffer for long term. There's other area to take care rather than spending billions in stupid company.

Disclaimer : I hold 250shares of HPQ at 41.75

Use Direct trading, you control

Broker : Just2trade.com
Fee : USD2.50 (Two dollars and cts fifty only0

If your account below USD5,000 - u just get web-based trade platform, which is not too bad. Rate 6/10

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Added on September 3, 2010, 12:44 amFor those who want to get a reasonable broker - here are screenshot of Just2trade.com

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Added on September 3, 2010, 6:06 amwoot, 4am onwards - the bull re-fuel and re-charged.


Dow Jones 10,320.10 +50.63 (0.49%)
S&P 500 1,090.10 +9.81 (0.91%)
Nasdaq 2,200.01 +23.17 (1.06%)

This post has been edited by zamans98: Sep 3 2010, 06:06 AM

3 mega news today. Beware and get ready to rumble.

Looking forward for a good entry for ING.