very good article.. Thanks a lot still triggered, and only one confirmed Hindenburg Omen.... pls informed if there are another ones....
BR On 15 August 2010 15:21, Syafrin Djohan <[email protected]> wrote: > > > > http://ewtrendsandcharts.blogspot.com/2010/08/hindenburg-omen-was-triggered-today.html > http://uk.reuters.com/article/idUKPTIP42198520100813 > > Apparently the last time the phenomenon occurred was twice in June 2008, > and once a month later. We all know what happened to the stock market that > Autumn. > > Thursday, August 12, 2010 > The Hindenburg Omen was triggered > today!!!!<http://ewtrendsandcharts.blogspot.com/2010/08/hindenburg-omen-was-triggered-today.html> > The Omen finally got triggered today, first, a quick refresher of what the > Omen is: > > It is a set of conditions, and rules that when all are met, greatly > increases the odds of a large sell-off, or crash of the markets. In fact no > crashes in the last 22 years have happened, that did not first have a > confirmed signal of a Hindenburg Omen. Just because all the conditions have > been might, and it becomes a confirmed Hindenburg Omen does not guarantee a > crash, only greatly increases the chances of a severe market correction > ahead. Another way to think about it is without a confirmed Hindenburg Omen > in place, Bulls can sleep a little better at night knowing that most likely > they will not awaken to the market down 10%. In fact the odds of a crash > based upon the history since 1985 is 27% chance after two or more signals > were confirmed. > > The best way to think about it is under normal conditions, there can be > large number of stocks, setting new 52 week highs, or a large number setting > 52 week lows, but not both. Things become out of balance when large numbers > of stocks are setting new highs, and lows at the same time. Having one > sector soaring, and another setting new lows is not good in the balance of a > healthy market. > > The traditional definition of a Hindenburg Omen is that the daily number of > NYSE New 52 Week Highs and the Daily number of New 52 Week Lows must both be > so high as to have the lesser of the two be greater than 2.2 percent of > total NYSE issues traded that day. > > And that has been updated to include two more sets of conditions to filter > out false readings; > > 1-That 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 percent of total NYSE issues > traded that day. > > 2-That the smaller of these numbers is greater than 75. (this is not a rule > but a function of the 2.2% of the total issues) ( as of 7-12-2010, 69 issues > are all that is required for the 2.2% rule!!) > > 3-That the NYSE 10 Week moving average is rising. > > 4-That the McClellan Oscillator is negative on that same day. > > 5-That new 52 Week Highs cannot be more than twice the new 52 Week Lows > (however it is fine for new 52 Week Lows to be more than double new 52 Week > Highs). This condition is absolutely mandatory. > > Rules 1 and 2, are pretty much addressing the same criteria, because if you > have 75 issues making new highs/lows, then mathematically, you also have > achieved 2.2%. The numbers of issues fluctuates daily and it is quicker to > use rule number 2. In other words, if condition 2 has been met, then > condition 1 will be met by default. > > Syafrin Djohan > 061-77816890, 081370268888 > Go Vegan for the Environment > > > >
