Monday, August 16, 2010

"Hindenburg Omen" instance predicts a stock market crash before the end of 2010

There is a rumor on the Internet (when isn’t there?) that a technical confluence in the stock market called the Hindenburg Omen has arrived, according to a blog posting on ZeroHedge by Tyler Durden on Aug. 12. The link is here. Call it an "instance" if the Hindenburg Omen is a java class. When you read the technical definition, you want to get on to coding methods..

That’s supposed to mean a strong likelihood of a stock market crash within the next 120 days, at least on the scale of the 2008 crash. Of course, the Hindenburg Omen was also observed in early 2009.

The theory is that when too many highs and lows occur on the same day or in a short time, the market is essentially unstable and will eventually topple, like a top that has stopped spinning,

The phenomenon is named after the crash of the crash of the German Hindenburg blimp (hydrogen filled) on landing in New Jersey in 1937, subject of a 1976 film.

Eric Rosenbaum also had a story on “The Streethere today Aug 16

Is this another “Chicken Little – Sky Is Falling” urban legend on the Web? Remember, in the film, Chicken Little is criticized by his dad for ruining his “online reputation” with his predictions.

Does somebody out there understand this?

No comments: