There’s been some buzz around the net about the Hindenburg Omen, a technical indicator named for the ill-fated zeppelin that points to a possible stock market crash in the near future. The fall season often seems to be rough on the market anyways (the crashes of 1929, 1987, and 2008 all occurred in the fall), and coupled with the fact that the economy appears to be dropping into a “double-dip”, could we see some fireworks on Wall Street in the coming months? Considering traders seems to follow the same indicators, could it just be a self-fulfilling prophecy? Or could the fact that so many people are hyping the HO serve as a contrarian indicator that the market might actually go up?
According to Tyler Durden at ZeroHedge, a Hindenburg Omen followed by numerous confirmations means a stock market decline of a significant percentage grows increasingly likely. As of Friday, we’ve had our third HO in about a week. More confirmations over the coming weeks would imply a greater likelihood of a crash.
If you’re interested in the technical details of the Hindenburg Omen, click here to check out a great article over at Financial Sense.
-CH
Need to sell a house? We buy houses for cash, even if you owe more than it’s worth, with no commissions or fees! Give us a call at (714) 583-9004 or fill in the web form on our home page and we’ll get back to you within 24 hours!
