Sometimes technical indicators seem named just to see how much fear they can provoke.
Take the "Hindenburg Omen," an indicator that depends on a number of variables that was triggered on Thursday in the stock market, portending a sharp correction in coming months.
Named after the zeppelin disaster that took place over Lakehurst, N.J., in 1937, the pattern is a "rare but potent" sell signal, said Jay Shartsis, director of option trading at R.F. Lafferty & Co.
For this to be activated, it requires at least 2.2 percent of the market to reach new 52-week highs and 52-week lows on the New York Stock Exchange on the same day, which happened Thursday, suggesting a lack of conviction among investors. (more)
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ReplyDeletehttp://www.youtube.com/watch?v=gn6kS4l2yFM