Tuesday, August 13, 2013

Hindenburg Omen Strikes Again - Biggest Cluster On Record

For the 5th time in the last 7 days, equity market internals have triggered an anxiety-implying Hindenburg Omen. Based on our data, this is the most concentrated cluster of new highs, new lows, advancing/declining based confusion on record. The last few occurrences have not ended well (though obviously not disastrously) but as the creator of the 'Omen' notes, the more occurrences that cluster, the stronger the signal.

Read More / View Charts  http://www.zerohedge.com/news/2013-08-13/hindenburg-omen-strikes-again-biggest-cluster-record

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From historical data, the probability of a [stock market] move greater than 5% to the downside after a confirmed Hindenburg Omen was 77%, and usually takes place within the next forty days. The probability of a panic sellout was 41% and the probability of a major stock market crash was 24%.-- Wikipedia

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UPDATE: 6th Hindenburg Omen In 8 Days Sends Stocks Slumping